The ongoing manufacturing recession will continue to worsen and may not
grow again until 2010, according to a forecast from the Manufacturers
Alliance/MAPI. The organization predicts that U.S. manufacturing
production will fall to 1.4 percent for 2008, then continue to decline
4.2 percent in 2009 and grow 0.9 percent in 2010. "The vicious circle
of financial crisis, decline in wealth, consumer spending cuts, and job
loss continues to spiral into a severe recession - certainly the worst
since the early 1980s," says Daniel J. Meckstroth, Ph.D., chief
economist for the Manufacturers Alliance/MAPI. "A recession among our
trading partners has weakened the outlook for exports, which is one of
the few remaining pillars providing positive support to the economy,
particularly the manufacturing sector." Manufacturing industrial
production declined 7.8 percent (annual rate) in the third quarter of
2008; non-high tech manufacturing production declined 8.2 percent.
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