Manufacturing Outpaces GDP in 2006
The economy is showing the lagged effects of higher interest rates, skyrocketing energy prices and slower employment gains. Gross domestic product growth should experience below-trend growth over the next 18 months, and manufacturing activity in the U.S., which has been on a roll lately, will slow appreciably in 2007, according to a new report.
The Manufacturers Alliance/MAPI Quarterly Economic Forecast predicts inflation-adjusted GDP growth will be 3.3 percent in 2006 and 2.5 percent in 2007, nearly consistent with the May 2006 projections of 3.3 percent and 2.7 percent, respectively. Overall U.S. GDP growth in 2005 was 3.2 percent.
By supplying major assumptions for the economy and running simulations through ...