The domestic U.S. manufacturing industry is leading the general economy on the road to recovery, after taking the biggest hit during the downturn, according to the latest quarterly economic report from the Manufacturing Alliance/MAPI.
In the 2009 fourth quarter, manufacturing industrial production grew nearly 6% on an annualized basis, compared with the third quarter, when it grew 8%. The growth rates measure each quarter against the previous three-month period.
The alliance predicts that total manufacturing production will grow 5% in 2010 and 5% in 2011, with high-tech industries outperforming the general manufacturing sector in both years.
“A recovery is clearly under way,” said Daniel J. Meckstroth, chief economist for the group and author of the report. “Monthly data for manufacturing production indicate that the recession, which started in January 2008, ended in June 2009. The worst of the inventory destocking is ending.”