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.