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Recovery "Clearly Well Under Way," Manufacturers Alliance/MAPI Reports

06/11/2010
MAPI, the Manufacturers Alliance, reports that the country's domestic manufacturing sector is showing signs of continued recovery. Industrial production grew at a 7 percent annual rate over three months ending in April 2010. MAPI expects the growth to continue, increasing by 6 percent overall in 2010 and 2011.

"A recovery is clearly well under way, and the industrial rebound is stronger than that in the general economy," said Daniel J. Meckstroth, chief economist for the Manufacturers Alliance/MAPI, and author of the analysis. "Consumer spending has returned to moderate growth, and the exceptionally severe winter prompted strong gains in non-automotive durable goods like clothing and utilities. An equally strong contributor is the swing in inventories. Since the beginning of the year, manufacturing has added about 100,000 jobs. Production grows faster than sales when firms move to less liquidation and then to rebuild inventories."

Nineteen of the 27 industries surveyed were in an accelerating growth phase. No industries experienced decelerating growth. MAPI expects 20 industries to gain in 2010. Iron and steel will lead the rise with 54 percent growth, and industrial machinery following close behind with 42 percent growth.

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