US manufacturing set to outperform GDP growth in 2013, 2014

According to the Industry group Manufacturers Alliance for Productivity and Innovation (MAPI), industrial production in the US is forecast to increase 2.2 per cent in 2013. This compares favourably to the expected GDP growth of just 1.8 per cent.

Similarly, as reported by Industry Week, industrial production for 2014 is forecast to grow by 3.6 per cent, while GDP is expected to increase by 2.8 per cent over the same time.

MAPI chief economist Daniel J. Meckstroth, the author of the analysis, says that there are reasons to be optimistic about economic growth in 2013 and 2014.

“One is that consumer deleveraging is close to an end. Consumers have refinanced, defaulted, or restructured mortgage debt and paid down instalment debt. Households have the capacity to use more credit, and loans are available for creditworthy households,” he said.

“In addition, the housing market is showing definitive improvement, particularly on the supply side.”

More specifically, aerospace products and parts production is expected to grow by 10 per cent. Non-high-tech manufacturing production accounts for 90% of the total. This is forecast to increase by 1.8 per cent in 2013.

In another positive sign for US manufacturing, working hours in the sector are at the highest levels since WWII.

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