Two Manufacturing Sectors Bucked Trend in 2008

Washington, DC, Jan. 22, 2009--Last week's report by the Federal Reserve that overall manufacturing production ended the year with a 2.3% decline in production in December capped the worst quarterly performance in nearly three decades, according to Dave Huether, chief economist of the National Association of Manufacturers.

Manufacturing production declined at an annual rate of 16.7% in the fourth quarter, the greatest decline since the second quarter of 1980, when production fell 19.3%

For the year overall, manufacturing  production declined by 7.7 percent in 2008, marking the largest four quarter decline in 33 years.

Of the 19 major manufacturing industries, only two (computers and electronics, and petroleum and coal products, which together account for 16% of the  manufacturing economy) experienced gains in output last year.  And in both of these industries, the gain was less than 1%.

Meanwhile, seven industries (accounting for nearly a quarter of  manufacturing production) experienced double digit declines in output last year:  wood products, primary metals, motor vehicles and  parts, aerospace, furniture, textiles, and plastics & rubber products.