Manufacturers Alliance Sees Two Years of Growth

Washington, DC, May 20, 2010--Relief on the employment front and prospects for increased equipment are likely to spur two years of growth in the U.S. economy, according to a report from the Manufacturers Alliance.

After last year's 2.4% drop in gross domestic product, the Arlington, Va.-based trade group projected in its latest quarterly forecast Wednesday that the economy will expand by 3.3% in 2010 and by 2.9% in 2011.

"Jobs have come back more quickly than we previously anticipated, which makes this a 'real' recovery and signals that consumer spending may have staying power," said Dan Meckstroth, chief economist for the alliance.

He also said that, after a flat first quarter marked by "panic cancelling," he expects double-digit growth in equipment spending through the remainder of 2010.

Manufacturers are expected to add 400,000 jobs this year and another half a million next.