Economic growth is expected to continue in the U.S. throughout the remainder of 2011, according to the nation’s purchasing and supply executives in their spring 2011 Semiannual Economic Forecast. Expectations for the remainder of 2011 have improved in both the manufacturing and non-manufacturing sectors. These projections are part of the forecast issued by the Business Survey Committee of the Institute for Supply Management™ (ISM). The forecast was presented by Norbert J. Ore, CPSM, C.P.M., chair of the ISM Manufacturing Business Survey Committee; and Anthony S. Nieves, C.P.M., CFPM, chair of the ISM Non-Manufacturing Business Survey Committee.
Sixty-eight percent of respondents predict revenues will be 13.2% greater; 12% expect a 13.2% decline and 20% foresee no change. This yields significant expectations for growth in 2011, as manufacturers’ net revenues are expected to increase 7.5%. The results represent an improvement in expectations from December 2010, when the panel of supply management executives predicted a 5.6% increase in 2011 revenues compared to 2010. With operating capacity improving to 83.2%, an expected capital expenditure increase of 17.9%, and prices paid expected to increase 7.4% for the full year of 2011, manufacturers will be challenged to grow revenues and contain costs through the remainder of the year.
“Much of manufacturing has emerged from the economic downturn and is experiencing significant growth,” Ore said. “Capacity utilization is back to typical levels and manufacturers are significantly investing in their businesses. The positive forecast for revenue growth and improved employment will drive the continuation of the recovery in the sector.”
The 17 industries reporting expectations of growth in revenue during the year-listed in order-are: plastics and rubber products; fabricated metal products; primary metals; apparel, leather, and allied products; machinery; computer and electronic products; transportation equipment; food, beverage, and tobacco products; nonmetallic mineral products; printing and related support activities; wood products; chemical products; miscellaneous manufacturing; textile mills; electrical equipment, appliances, and components; furniture and related products; and paper products.
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