Manufacturing Growth Slows but Continues

Washington, DC, May 23, 2011--While manufacturing continues to expand, several measures released last week indicate that overall growth has slowed, according to the National Association of Manufacturers.

Manufacturing production was down 0.4% in April, according to the Federal Reserve's industrial production numbers. This is largely due to supply disruptions stemming from Japan's earthquake.

Motor vehicle production was down 8.9%, though industrial production, excluding the automotive sector, rose 0.2%.

The New York Fed found that the index of new orders and shipments fell for the last month, citing higher raw material costs as a concern. Positives included job growth and an optimistic six-month outlook.

The Conference Board's Leading Economic Index declined, mostly due to supply chain issues and higher monthly initial job claims, but its Coincident Economic Index grew, assisted by increases in industrial production and nonfarm employment. The Bureau of Labor Statistics reported that 38 states had increases in manufacturing employment in the month of April, with the largest gains in Rust Belt states.

Meanwhile, the National Association of Business Economics released its forecast of growth for 2011 and 2012, which was extremely positive. Respondents predicted 3.3% growth in 2011 and are expecting industrial production to be up 4.5% this year.