Manufacturers appear more optimistic about the overall economic outlook than about their own lines of business. They expect the U.S. economy to grow at a modest 2% to 3% rate this year, but four out of 10 look for a continued recession within their own industrial sectors, according to a recent member survey by NAM. Additional hiring and capital investment will frequently be put off until these sentiments improve. The NAM survey suggests capital spending in the sector will increase by 5% this year.
The building product manufacturing sector's 2002 prospects for recovery are a little better. The reason is that it has stayed healthy compared to U.S. manufacturing as a whole by riding on the coattails of the thriving construction sector during 2001, and the growth rate for construction built will be flat this year.