US industrial production to grow 4% this year, slow to 3% in ‘12

14 December 2011 18:34  [Source: ICIS news]

WASHINGTON (ICIS)--US industrial production will show 4% growth for full-year 2011 but will slacken somewhat in 2012 to a 3% expansion before picking up steam again in 2013, a major manufacturing group said on Wednesday.

In its quarterly industrial outlook, the Manufacturers Alliance for Productivity and Innovation (MAPI) said that manufacturing industrial production experienced strong growth in the third quarter this year and was expected to show continuing momentum in the now ending fourth quarter to result in full-year growth of 4%.

The broad US manufacturing industry is a key downstream consuming sector for chemicals and resins and includes such segments as auto production, housing construction and durable goods manufacturing among many others.

“The growth is being led by the energy, transportation and industrial equipment industries,” said MAPI chief economist Daniel Meckstroth.

“We believe the continuing pickup in domestic auto production also will be a major driver of overall economic growth next year,” he said.

“Pent-up demand for postponed consumer durable goods continues to exist, particularly in motor vehicles,” he said, and “firms are profitable and have the need to spend more for both traditional and high-tech business equipment”.

Meckstroth said that MAPI also expects that reasonably strong growth among emerging economies – China, India, Brazil and other Asian and Latin American countries – will continue to drive US exports.

Of the 27 manufacturing industrial industries that MAPI monitors, the strongest gains in 2012 are likely to be in US new home construction, Meckstroth said, which is forecast to grow by 20% next year.

However, he noted, that strong expansion in the long-struggling US housing construction industry is measured against “severely depressed levels in 2011”.

Overall manufacturing industrial activity will continue to expand in 2012, MAPI said, although at a slower 3% pace. The manufacturing sector is expected to resume a 4% annual growth rate in 2013, the alliance said.

Paul Hodges studies key influences shaping the chemical industry in Chemicals and the Economy

By: Joe Kamalick
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