MAPI Report: October Manufacturing Economic Update

posted on 11.06.14

Cliff Waldman, Director of Economic Studies at the MAPI Foundation overviews the most recent manufacturing data on industrial activity. After contracting by 0.5 percent in August, U.S. manufacturing output growth rebounded by the same percent in September. Aerospace, computer and electronics, and fabricated metals were the most significant contributors to overall manufacturing growth in September, while machinery and motor vehicles experienced somewhat expected pullbacks after a period of outsized gains. The modest, albeit slowing, recovery in the U.S. housing market propelled an impressive gain in furniture output. Analysts have noted a long-standing sluggishness in U.S. capital investment.  In the current period it is thought to be a function of an unusual level of uncertainty regarding the U.S. and global economic outlooks and high levels of uncertainty regarding a range of economic policies on all levels of government.

All told, the MAPI foundation predicts moderate manufacturing growth over the next few years.  We estimate that output growth will be 3.4 percent for 2014 and then accelerate to 4.0 percent in 2015 before moderating to 3.6 percent in 2016.

Update provided in partnership with the Manufacturers Alliance for Productivity and Innovation.