When it comes to the economy, the first half of 2013 was good and bad, according to Dan Meckstroth, chief economist for the Manufacturers Alliance for Productivity and Innovation. Taxes and "necessary government austerity" restrained growth in many areas, but at the same time segments that have been struggling for years, such as residential construction, are now positive contributions to overall economic growth in the U.S.

Meckstroth discussed current economic conditions and MAPI's forecast for the U.S. economy in a recent webcast (available here). 

Job growth is also a mixed bag, according to Meckstroth. The U.S. still has a deficit of 1.9 million jobs when compared with the beginning of the recession in December 2007, but growth in most segments has been steady.

Manufacturing and construction industries, however, are still struggling to regain the employment levels of nearly six years ago. If you add together the job deficits from manufacturing and construction, Meckstroth says, "it more than accounts for the total deficit of jobs."

Manufacturing lost 2.3 million jobs during the recession and has only added 0.5 million since the recession's end; construction lost 1.8 million jobs and has only added 0.1 million back.

The other challenge, according to Meckstroth, lies in the quality of jobs. The jobs that have been added are on the low and high ends of the skill spectrum. "The middle has been hollowed out," he says.

But it's not all bleak, particularly when it comes to residential construction. Meckstroth and MAPI forecast that housing starts will grow 20 percent in 2013, another 20 percent in 2014, and 27 percent in 2015 – which will bring the total number near the "normal" level of 1.6 million units. This growth is good news for the economy because housing is part of a "virtual circle" of investment, according to Meckstroth. As demand continues to increase, more houses need to be built, which leads to more jobs, and more people looking to buy more houses.