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Report Anticipates Slower Manufacturing Growth, Improved Hiring (11/27/15) Andy Szal

Economists from the Manufacturers Alliance for Productivity and Innovation Foundation are less optimistic about U.S. manufacturing production over the next two years, but believe that the sector will add more jobs that previously anticipated. The group’s latest quarterly economic forecast estimated that production would increase by 2.6% next year, and by 3.0% the year after that, down from the 3.4% and 3.1% predicted, respectively, in the August forecast.

However, U.S. manufacturers are expected to add 100,000 jobs in 2016 and 110,000 in 2017. The previous analysis anticipated 94,000 added jobs next year and only 30,000 in 2017. Domestic demand will maintain growth in the U.S. manufacturing sector despite deflationary pressure stemming from falling energy prices, low commodity prices, and slow overseas economies, says Dan Meckstroth, the chief economist at the MAPI Foundation.