Forecasting may be the easy part, explaining why you got it wrong after publishing it is the
hard part. So I was pleased to read, in an article by Casselman and Izzo in the February 13th Wall Street Journal, that I wasn’t theonly one that guessed wrong on the 2011 economy. It seems that 52 economists WSJ surveyed weren’t great forecasters as they predicted the economy would move forward and things were looking good. Then, as they say, “all hell broke loose” followed by one in Thailand and the economy tanked in Europe and all bets on a good year were off. As the Journal says, “The results reflect the inherent uncertainty of economic prognostication.”
For my part I went the other way on the industrial laser economy and took a more conservative approach. The result, I missed the record year number and had to do a fast shuffle at the end of November to get a more reasonable number in print in the January issue of ILS.
The Association for Manufacturing Technology just reported their calendar 2011 numbers. December U.S. manufacturing technology orders were up 12.2% from November and up 12.7% when compared with the total of $461.48 million reported for December 2010. For the year 2011 was up 66.4% compared with 2010, making 2011 the strongest year in more than a decade and higher than forecasters predicted.
I had noted the strength in the U.S. manufacturing sector but frankly was reticent to report it, as were many other analysts. We were all waiting for the proverbial other shoe, a double dip recession, to drop, month after month, until it became a non-issue in the fourth quarter.
Now I am reconsidering my forecast for 2012, especially since the WSJ economists are predicting only a modestly fast growth in 2012. They got it wrong last year and who says they won’t this year. Their track record isn’t great.