Auto companies and construction firms face the prospect of another dismal year in 1991 but the leather tanning, semiconductor, aircraft and medical supplies industries are gearing for growth, the Commerce Department said.
"Overall, we see continued growth in 1991 for the majority of industries, both manufacturing and services," said J. Michael Farren, the department's undersecretary for international trade.In its industrial outlook for the coming year, the government said Sunday both the automotive and construction industries will experience negative growth next year, which, in turn, is likely to be a strong drag on the national economy.
"The declines in both construction and motor vehicles will have significant impact on a number of other major industries, including building materials, household durables, steel, and wood products," Farren said.
The sluggishness in real estate that rippled through the United States this year is forecast to continue into the new year.
The largest declines next year are expected in office and hotel construction, which are forecast to drop 15 percent and 20 percent, respectively. The slowdown was blamed on already high vacancy rates for commercial office buildings and excess hotel capacity.