A combination of strong growth in jobs plus replacement demand for equipment from businesses will provide a stable base for overall economic growth, according to a new report released by The MAPI Foundation, the research affiliate of the Manufacturers Alliance for Productivity and Innovation.
The group released its quarterly economic forecast, predicting that inflation-adjusted gross domestic product will expand 2.8% in 2015 and 3.0% in 2016. Both are declines from the August report—of 3.0% and 3.3%, respectively.
Manufacturing production is expected to outpace GDP, with anticipated growth of 3.5% in 2015 (a decrease from 4.0% in the previous forecast) and 3.9% in 2016 (an increase from 3.6% in the August report).
The November 2014 report forecasts a five-year horizon in which GDP is expected to average 2.8% and manufacturing production to average 3.26% growth.
“We will have full employment in 18 months and manufacturing is already there,” said MAPI Foundation Chief Economist Daniel J. Meckstroth.
Read more: Industry Week