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Wednesday, September 05, 2012

Trade Group Offers Latest Sign of Faltering Factories - Real Time Economics - WSJ

Trade Group Offers Latest Sign of Faltering Factories - Real Time Economics - WSJ
 
The Manufacturers Alliance for Productivity and Innovation said Wednesday that it expects manufacturing production to show just 4.5% growth in 2012 and a 2.3% gain in 2013. In May, the group forecast 5.2 % growth this year and a 3.3% increase next.
“While there is pent-up demand for replacing worn equipment — it is the uncertainty about the ‘fiscal cliff,’ declining business activity in Europe, and worries about a hard landing in China that are holding back longer-term commitments,” said MAPI Chief Economist
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The manufacturing sector has been a steady jobs engine during much of the recovery, adding 233,000 jobs last year and 182,000 through July of this year.
MAPI sees job growth in the sector slowing from that pace. The group is expecting manufacturers to add 208,000 jobs in 2012 and 231,000 jobs in 2013. These figures are also well below the May forecast of 312,000 jobs in 2012 and 361,000 jobs in 2013.

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