posted on 01.26.12

The economic outlook for 2012 continues to be conservatively optimistic. The year has
started out with encouraging news about employment, manufacturing, and retail sales. This should start a positive trend that will carry through the year. There will not be a full recovery from the recession until the excess housing inventories are sold, including those houses “in waiting” for the market to improve. However, while 2012 is not expected to be an exceptional year, it should continue the upward movement seen in 2011 and set the economy on track for solid gains by mid-decade.

Industry continues to the bright spot in the recovery, although the industrial production
index has not yet returned to pre-recession levels. MTI billings, however, have easily exceeded earlier highs.

The growth rate for MTI billings has slowed over the last year following the rapid rise
from the 2009 low. After gaining 19.0% in 2011, billings are expected to grow only 3.6% in
2012 and then improve more rapidly in 2013 with gains of around 5%.

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