The U.S. manufacturing sector will see modest growth in 2013 followed by more rapid expansion in 2014 according to the quarterly U.S. Industrial Outlook released by The Manufacturers Alliance for Productivity and Innovation (MAPI) on Thursday.
The MAPI report predicts that industrial production will grow 2.2 percent in 2013, compared to the 1.9 percent rate in 2012. This is a slight uptick from the 2.0 percent MAPI predicted in its December quarterly outlook. MAPI also increased its 2014 forecast, adjusting predicted growth from 3.2 to 3.6 percent. GDP growth, which declined at 0.1 percent in 2012, should rise by 1.8 percent in 2013 and 2.8 percent in 2014.
The Industry Outlook report also analyzes 24 of 27 industries. Key growth areas include housing, transportation equipment, medical care and aerospace products and parts production, which are among 16 industries expected to grow. In 2014, MAPI forecasts 23 of the 24 covered industries will experience growth.
“Despite some austerity measures, there are several reasons to be optimistic about continued economic growth in 2013 and 2014,” MAPI Chief Economist Daniel J. Meckstroth said in a statement. “One is that consumer deleveraging is close to an end. Consumers have refinanced, defaulted, or restructured mortgage debt and paid down installment debt. Households have the capacity to use more credit, and loans are available for creditworthy households. In addition, the housing market is showing definitive improvement, particularly on the supply side.”