MODERN DISTRIBUTION MANAGEMENT: U.S. ECONOMY POISED FOR GROWTH
According to the Manufacturers Alliance/MAPI Quarterly Economic Forecast, the U.S. Economy is finally poised for growth. Modern Distribution Management expanded on the report.
Modern Distribution Management Excerpt:
Long-awaited growth is finally poised to return to the U.S. economy, albeit at a far more modest rate than the typical recovery from previous recessions, according to the Manufacturers Alliance/MAPI Quarterly Economic Forecast. Inflation-adjusted gross domestic product (GDP) is expected to decline 2.5% in 2009, before rebounding to 2.4% growth in 2010, and 3.5% growth in 2011. The GDP forecast for all three years in the current MAPI report is marginally better than was previously projected in August 2009. By supplying major assumptions for the economy and running simulations through the IHS Global Insight Macroeconomic Model, the Alliance generates unique macroeconomic and industry forecasts.
“We are pleased there is growth in the overall economy, and surprisingly strong growth in manufacturing,” said Daniel J. Meckstroth, Manufacturers Alliance/MAPI chief economist. “Yet by historical standards it is still modest compared to recoveries from past recessions.
“Manufacturing production growth, at 4.6%, will grow faster than the general economy, at 2.4%, in 2010,” he said. “An inventory swing in the goods producing sector is a major reason for the acceleration in manufacturing production. We expect manufacturing growth to be led by high technology products, semiconductors, and computers.”
Manufacturing production growth is expected to decline 11.3% this year before rebounding to 4.6% growth in 2010 and to 6.0% growth in 2011.