25 August 2011 17:41 [Source: ICIS news]
WASHINGTON (ICIS)--A major manufacturers group on Thursday lowered its forecast for ?xml:namespace>
In its quarterly economic forecast, the Manufacturers Alliance said it expects
For 2012, the alliance forecasts GDP growth of 2.1%, a downgrade from its May outlook predicting a 2.7% expansion.
Daniel Meckstroth, chief economist for the alliance, cited the sharply lower economic performance in the
The department’s initial estimate had been 1.9% GDP growth in the first quarter.
In addition, the department said that second quarter GDP growth was only 1.3%, well below the 1.8% pace that many economists had been expecting.
Normal annual GDP growth for the
With its outlook for
“Overall job growth will be disappointing,” Meckstroth said.
Other concerns also impact US economic prospects going forward, he said.
“We have already seen a stock market correction, and there could be further reverberations of the
“In addition, the political gridlock in solving the long term federal budget deficit lowers confidence in the US, and state and local governments are in an austerity mode,” he added.
“Unfortunately, there are relatively few economic drivers that are likely to accelerate over the rest of the year,” Meckstroth said.
Manufacturing is among the few bright spots in the
However, here too the alliance has lowered its expectations from just three months earlier, when it forecast manufacturing growth of 6.2% this year and 4.2% in 2012.
Paul Hodges studies key influences shaping the chemical industry in Chemicals and the Economy
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