U.S. economic outlook for 2013 and 2014

02/19/2013

Daniel J. Meckstroth, Ph.D., vice president and chief economist
MAPI believes that the fourth-quarter decline in economic activity is not the beginning of another recession or a harbinger of one. On the contrary, the end-of-year weakness was a correction in production to temporary surges in the third quarter. We predict that manufacturing production will increase 2.2% in 2013 and 3.6% in 2014, versus 1.8% and 2.8% growth, respectively, for the economy as a whole. The bottom line is that stronger growth in business fixed investment and residential construction is offset by government spending austerity. Economic Update

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