ARLINGTON, VA -- Manufacturing production is expected to show 5.8%percent growth in 2010, 4% percent growth in 2011, and 4.9%percent growth in 2012, according to t
he Manufacturers Alliance/MAPI Quarterly Economic Forecast.
The group also predicts that inflation-adjusted gross domestic product (GDP) will expand by 2.8% in 2010, decelerate to 2.5% growth in 2011, and increase by 3.2% in 2012.
“Consumers are deleveraging and paying off debt, and we do not believe easy credit will return in this expansion,” said Daniel Meckstroth, Manufacturers Alliance/MAPI chief economist. “Furthermore, consumers have a pressing need to spend less than their income growth in order to rebuild the wealth needed for retirement. Faster growth outside of personal consumption expenditures causes a rebalancing of economic resources. Investment in equipment, software, and structures is expected to expand. Another driver of growth is exports. The decline in the value of the dollar and strong growth in emerging economies allows domestic firms to expand foreign sales.”
The forecast for inflation-adjusted investment in equipment and software is for 15.2% growth in 2010, 11.7% growth in 2011, and 8.2% growth in 2012. Capital equipment spending in high-tech sectors will also continue an upward trend. Inflation-adjusted expenditures for information processing equipment are anticipated to increase by 12.9% in 2010 and by 7.2% in 2011 before decelerating to 4.8% in 2012.
Read MAPI's report.
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