Manufacturing Contributed $2.895 Trillion to the U.S. Economy in Q4
- The U.S. economy grew 2.6% at the annual rate in the fourth quarter. Real GDP in the manufacturing sector rose by an annualized 5.5% in the third quarter, adding 0.49 percentage points to headline real GDP growth in the third quarter.
- Manufacturing value-added output increased to $2.895 trillion in the fourth quarter, an all-time high, with record levels for both durable and nondurable goods. Manufacturing accounted for 11.1% of value-added output in the U.S. economy in the fourth quarter, the most since the third quarter of 2019.
- The current forecast is for 2.0% growth at the annual rate for the first quarter of 2023. In the most recent NAM Manufacturers’ Outlook Survey, nearly half of respondents felt that there would be a recession this year. With that said, a “soft landing”—with the economy avoiding a recession—remains possible, likely hinging on continued strength in the labor market and some built-in resilience in the economy.
- In the latest NAM outlook survey, 74.7% of respondents felt positive in their company outlook, up from 68.9% in the fourth quarter, which had been the lowest since the third quarter of 2020. Three-quarters of manufacturers cited the inability to attract and retain employees as their top primary challenge, followed by concerns about increased raw material costs and supply chain challenges.
Share This Story, Choose Your Platform!