U.S. Manufacturing Headed For Smoother Sailing In 2014

U.S. manufacturing appears to be headed for a good year in 2014 with equipment spending likely to increase 7 percent, compared to 3.5 percent in 2013, according to a recent analysis by HIS Global Insight.

Observed Daniel Meckstroth of the Arlington, Va.-based Manufacturers Alliance for Productivity and Innovation to the Wall Street Journal: "I think business people are pretty confident longer term."

Employment has yet to rebound, growing 5 percent to 12 million since early 2010, down significantly from the pre-recessionary 18 percent.

The nation’s reliance on manufactured imports, however, is likely to continue but not at the clip it had before. The trade deficit for such products narrowed only slightly from 2012.

But China’s rising wages coupled with lower U.S. energy prices is likely brighten that picture in 2014.