U.S. manufacturers expect the economy's growth rate to double by year-end, supported by a weaker dollar, a trade group said.
The National Association of Manufacturers in its 2003 outlook released in Washington projected that U.S. gross domestic product will expand at a 1.8 percent annual rate this quarter, a 4 percent pace in the third quarter and a 3.8 percent clip in the final three months of the year.
"The economy is at a turning point," the group said in its outlook. "The good news is that the foundation for faster economic growth in the second half of the year is now in place."
The dollar since February 2002 has fallen 13 percent against major world currencies, the group said. "This should make exports more competitive later in 2003 and especially in 2004 if current trends hold up."
NAM said the dollar's depreciation will lower the U.S. trade deficit by $100 billion by mid-2004. NAM is the largest U.S. industrial trade association with 14,000 members.