"We are pleased there is growth in the overall economy andsurprisingly strong growth in manufacturing," says ManufacturersAlliance/MAPI chief economist Daniel J. Meckstroth. "Yet byhistorical standards it is still modest compared to recoveries frompast recessions."

According to Meckstroth, manufacturing production growth willgrow faster than the general economy next year. While the former isexpected to decline 11.3% this year, it is projected to rise 4.6%next year and 6% the year after. "An inventory swing in the goodsproducing sector is a major reason for the acceleration inmanufacturing production," he explains. "We expect manufacturinggrowth to be led by high technology products, semiconductors andcomputers."

The organization expects production in non-high-tech industriesto decline 11.3% this year but increase 2.3% next year and 5.8% theyear after. The computers and electronics products sector will alsosee a drop-off this year, declining by 9.4%. But it is projected toimprove markedly next year, showing 15.9%, followed by an even morerobust 17.5% in '11.