U.S. Machinery Recovery Will Continue Through 2006

U.S. machinery manufactures reported a positive year in 2005 with a 10% increase in shipments, to just under $317 billion. Growth is expected to continue in 2006.

Domestic spending on machinery reached $322.3 billion in 2005, an increase of 11%. U.S. manufacturers saw sales in the domestic market rise 9% and imports increase 16%.

Orders for the fourth quarter of 2005 were valued at $87.6 billion. The first two months of 2006 exhibited an 8.5% increase for the same time period in 2005.

In 2006, power equipment manufacturers may see a slowdown in the off-highway equipment market due to lack of pressure to increase capacity in electric utilities.