ARLINGTON, Va. -- The U.S. manufacturing recession intensified in the third quarter and is now part of a global downturn, according to the Manufacturers Alliance/MAPI.
"There was a sudden and acute acceleration of the decline in the industrial sector in September and October," said Daniel J. Meckstroth, Ph.D., Chief Economist for the Manufacturers Alliance/MAPI. "The vicious circle of financial crisis, decline in wealth, consumer spending cuts, and job loss continues to spiral into a severe recession -- certainly the worst since the early 1980s."
MAPI expects a decline in the industrial sector this year and next, with some marginal improvement in 2010. Manufacturing production is expected to fall 1.4 percent in 2008, decline 4.2 percent in 2009, and grow 0.9 percent in 2010.
Manufacturing industrial production declined at a 7.8 percent annual rate in the third quarter 2008 after falling at a 4 percent rate in the second quarter.
Non-high tech manufacturing production declined at an 8.2 percent annual rate in the third quarter. It is expected to decline 2.9 percent for the year, fall another 6.3 percent in 2009, and grow by 0.9 percent in 2010.
"The financial crisis in the United States has spread to most other regions of the world, creating a gloabl downturn," Meckstroth said. "A recession among our trading partners has weakened the outlook for exports, which is one of the few remaining pillars providing positive support to the economy, particularly to the manufacturing sector."
For more information, visit http://www.mapi.net