Solid OUTLOOK for '05

摘要

Let the good times roll. Thanks largely to a rebounding national economy, many businesses are coming off a healthy 2004. "We have seen a significant turnaround from the period of 2001-2003 when our members were hit hard," says Michael Smeltzer, director of the Manufacturers' Assn. of South Central Pennsylvania, a trade group whose members represent a broad range of industries. A federal tax strategy that energized consumer confidence and the depletion of inventories in the supply chain were contributors to the turnaround, he says. Other observers, such as Sophia Koropeckyj at Economy.com, a research firm based in West Chester, Pa., cite as positive forces a stronger global economy lifting all ships and a weaker dollar spurring exports. Also, a rebound in capital spending was spurred by lower interest rates. Finally, healthy corporate balance sheets enjoyed a stimulus from accelerated depreciation allowances.