Manufacturing's Fortunes Tied to Exports - Oct 25 2004

US manufacturing output has finally returned to prerecession levels thanks in part to rising demand for exports. That is the good news. The bad is that export growth has slowed and industries such as autos are expected to curb production in coming quarters, prompting economists to wonder whether or how long output will remain at these new high levels. Exports of industrial machinery are up54% this year, engines and power equipment 20%, and specialized machinery 16% according to Commerce Department. Exports are growing in scientific instruments, aerospace equipment, car parts and toys.