Feb. 6, 2013
Manufacturers Renew Call for Growth Strategy
Fourth-quarter U.S. GDP decreased by 0.1 percent, a figure that came as no shock to the Washington, D.C.-based National Association of Manufacturers.
"Late last year NAM released its Fiscal Shock study, which found that the fiscal cliff would reduce real GDP by 0.6 percent in 2012 from what it would have been without the fiscal cliff debate," NAM Chief Economist Chad Moutray says. "We saw manufacturers pulling back on spending and hiring at the end of last year as they worried about slowing sales and fiscal uncertainties. This was confirmed in the latest NAM/IndustryWeek Survey of Manufacturers, which found their overall optimism declined significantly throughout the year."
Though the fiscal cliff was averted, concerns remain over sequestration—across-the-board cuts to government spending that have the potential to cost a million jobs by 2014—as well as the toll economic headwinds overseas have taken on U.S. exports.
"The reality of this news comes as all Americans are seeing less in their paychecks, and businesses continue to face uncertainty as policymakers kick the can down the road on our debt," Moutray says. "It is frustrating to manufacturers—who continue to call for pro-growth policies that address the true drivers of our spending problems—that policymakers can’t seem to put forth a growth plan."