US manufacturing slump will hinder growth into 2016
Subject Outlook for US manufacturing. Significance Decline in the US manufacturing sector has dampened the country's broader recovery from the 2007-09 recession and has significant regional implications for growth and employment. The political clout of manufacturers and their affiliated labour unions will play a significant role in the US domestic debate surrounding ratification of the Trans-Pacific Partnership (TPP) trade pact. Impacts Faltering manufacturing production, high inventory levels and a deteriorating merchandise trade deficit will likely slow US economic growth. Consumer durables, automotive products and capital goods will benefit from low interest rates, but face competition from cheaper imports. Deteriorating profit margins will reduce industrial investment as well as overall levels of employment in manufacturing. The decline in US manufacturing will boost protectionist voices in Congress and politically bolsters TPP opponents.