(Industry Week – Agence France-Presse)
MAPI says manufacturing to increase 6.2% but economy only 2.7%
The U.S. economic outlook continues to show modest improvement, but while the manufacturing recovery is on track, caution flags remain for the overall economy. The Manufacturers Alliance/MAPI Quarterly Economic Forecast predicts that inflation-adjusted gross domestic product (GDP) will expand by 2.7% in 2011 and by 2.9% in 2012.
The 2011 forecast represents a downgrade over the previously estimated 3.2% growth, while the 2012 forecast is down slightly from the 3% growth anticipated in the February 2011 quarterly report.
“The economy is continuing to grow at a moderate pace with consumer durable goods, business equipment, and exports leading the way,” said Daniel J. Meckstroth, Ph.D., Manufacturers Alliance/MAPI chief economist. “Rising oil prices and government austerity at all levels, however, give pause to any excessive optimism.” Read more here.