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Industrial Production Jumps 0.8 Percent Part Two
In a separate report Tuesday, the National Association for Business Economics predicted that the economy, as measured by the gross domestic product, will grow by a healthy 4.6 percent this year, which would be the fastest annual GDP growth in 20 years. The GDP grew by 3.1 percent in 2003. The outlook, prepared by a NABE forecasting panel, marked a slight upward revision from a 4.5 percent forecast for 2004 that the group made last November. The forecasting panel also predicted that industrial production would surge by 5.1 percent this year and overall payroll employment, after falling for two years, would increase by 1.1 percent in 2004. "Cynics suggest that the only thing around the corner for employment is another corner, but the NABE panel remains firm in its belief that the wind will soon be at our backs and that the road to higher employment will rise up to meet us," said Duncan Meldrum, NABE's president and the chief economist at Air Products & Chemicals Inc. In January, production at factories - the biggest slice of industrial output tracked by the Fed - rose by a modest 0.3 percent, an improvement from December's 0.1 percent rise. Gains were relatively widespread last month, with production rising for automotive products, appliances, furniture and carpeting, business equipment, computers and machinery. "I like the fact that the rebound of capital spending has evolved to a point beyond the replacement of desktop and laptop PCs," said Ken Mayland, president of ClearView Economics. Production at gas and electric utilities jumped by 5.2 percent in January as unusually cold weather increased demand. That compared with a 1.3 percent drop in December. Output at mines nudged up 0.1 percent in January, following a 0.2 percent increase. The Federal Reserve decided to hold a main short-term interest rate at a 45-year low of 1 percent in January and said it would be patient when it came to any possible rate increases. Some economists believe the Fed will nudge up rates later this year. Others believe rates won't go up until 2005. Back to Original Article: News You Can Use
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