Because of government spending cuts and lack of global demand, U.S. manufacturing output is unlikely to rebound to prerecession levels for at least a year and a half, analysts say. "The sequester will hurt growth through the end of the year, while slowing growth in emerging markets and a lengthy eurozone recession have muted foreign demand. This is ... prompting businesses to remain ultra-cautious about hiring and capital spending," said economist Erik Johnson of IHS Global Insight.

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