Depression-Era Manufacturers’ Association Slashes U.S. Growth Forecasts — And 350,000 Jobs Disappear
Vincent Fernando, CFA
Aug. 24, 2010
The Manufacturers Alliance (MAPI), whose roots date back to the U.S. depression period when it was formed in order to help stabilize the manufacturing economy, has just slashed their U.S. GDP forecasts in their latest economic outlook.
Previously expecting 3.3% GDP growth this year, they now see just 2.9%. 2011’s forecast has also been trimmed to 2.6% from 2.9%.
“There is a somewhat bleaker outlook amid weaker economic data and it clearly indicates a slow growth mode,” said Daniel J. Meckstroth, Manufacturers Alliance/MAPI Chief Economist. “For instance, the numbers for June retail trade, inventories, and foreign trade have all come in weaker than the Bureau of Economic Analysis had estimated in the preliminary estimate of second quarter GDP growth. The homeowners’ tax credit has expired. Consumers are not spending as much. They are saving more and repaying debt, which is good for the long run but not the near term. The inventory swing is over and the benefits of the stimulus have basically run their course.”