Almost six in ten American manufacturers believe ongoing inflation will lead to a recession in the United States, a new survey from the National Association of Manufacturers (NAM) finds.
Inflation under President Joe Biden soared to 8.6 percent last month — the highest in 41 years — and American manufacturers are expressing a gloomy outlook over the next year for the United States economy.
In the latest NAM survey, more than 59 percent of American manufacturers said they believe inflation is likely to spur a recession in the United States. About 52 percent said they do not believe the Federal Reserve will be able to avert a recession.
Likewise, American manufacturers expect raw material costs to rise 6.9 percent and prices for their products to go up 5.9 percent over the next year. About 75 percent said inflation was worse today than it was six months ago and more than 53 percent suggested the higher prices are making it harder for them to remain competitive and profitable.
On United States–China free trade, more than 88 percent of American manufacturers said it is important for the federal government to support domestic manufacturing — including almost six in ten manufacturers who called such an effort “very important.”
The rough outlook among American manufacturers comes as manufacturing activity in New York has contracted for the second consecutive month. In May, the New York Fed’s “Empire State” survey of manufacturers produced a negative 11.6 reading. In June, the survey produced a negative 1.2 reading.
The NAM survey included 333 respondents representing small-, medium-, and large-scale manufacturers in the United States and was conducted from May 17 to May 31.
John Binder is a reporter for Breitbart News. Email him at jbinder@breitbart.com. Follow him on Twitter here.
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