The National Association of Manufacturers issued a cautiously optimistic prognosis for the U.S. economy and the manufacturing sector on the eve of the Labor Day weekend, based on signs of stabilization in a number of key areas.
Among the positive indications that a recovery is starting to sprout are improvements in the housing market, increased activity in European markets, and new orders for capital goods, the group’s “Labor Day 2009” report states. However, the NAM warned of the fragility of the recovery.
“A recovery could stall out or even shift into reverse if Congress and the administration enact policies that discourage investment, hamper flexibility, or raise the costs of doing business in the United States. Prospects for good jobs, a strong manufacturing sector, and a growing economy depend on U.S. global competitiveness,” said John Engler, NAM president and CEO, in a letter introducing the report.
The Manufacturers Alliance/MAPI Quarterly Economic Forecast, released a week ago, also called for a “modest and fragile” recovery over the next two years.