20 September 2011 17:03 [Source: ICIS news]
Manufacturers Alliance chief economist Daniel Meckstroth attributed the second quarter flat-line to a series of shocks, including the tail end of a severe North American winter season, widespread spring flooding, the supply-chain impact of the Japan tsunami, high commodity prices and the ongoing housing industry recession.
While they are part of the broad US manufacturing sector, petrochemicals producers and downstream chemical and resins makers also rely heavily on other manufacturing segments – automotives, machinery, durable goods, housing materials, etc. – as key industrial consumers of chemicals and plastics.Although US manufacturing was expected to experience growth for the full year of 2011 and through 2012, Meckstroth said that the alliance has had to downgrade its outlook for manufacturing performance overall for the two years.
In May, the alliance had predicted that US manufacturing would see growth rates of 6% for full-year 2011 and a 4% expansion in 2012.
But those forecasts have been adjusted downward, he said, to a 4% expansion for manufacturing production this year and a growth rate of 3% in 2012.
Meckstroth said the downgrade was driven by the recognition of weakening in the
The alliance does not expect US GDP to expand by more than 1.6% this year or more than 2.1% in 2012.
In ordinary times, the
The White House recently said that it expects
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