Posted April 27, 2010
ISM: Economic growth to continue
Economic growth is expected to continue in the United States throughout the remainder of 2010, say the nation's purchasing and supply executives in their spring 2010 Semiannual Economic Forecast.
Expectations for the remainder of 2010 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).
Manufacturing Summary
Sixty-six percent of respondents predict revenues will be 12 percent greater, 13 percent expect an 11.1 percent decline, and 21 percent foresee no change. This yields significant expectations for growth in 2010, as manufacturers' net revenues are expected to increase 6.3 percent. This represents an improvement in expectations from December 2009 when the panel of supply management executives predicted a 5.7 percent increase in 2010 revenues compared to 2009. With operating capacity improving to 72.8 percent, an expected capital expenditure increase of 2 percent, and prices paid expected to increase 3.8 percent for the full year of 2010, manufacturers will be challenged to grow revenues and contain costs during the year.
"Manufacturing is emerging from a period in which many companies lost significant volumes of business due to reduced demand. While excess capacity and meager capital investment are concerns, the forecast of revenue growth and improved employment will drive the continuation of the recovery," said Norbert J. Ore, chair of the ISM Manufacturing Business Survey Committee.
The 15 industries reporting expectations of revenue growth (3 percent or greater) during the year — listed in order — are: Wood Products; Transportation Equipment; Electrical Equipment, Appliances & Components; Primary Metals; Paper Products; Textile Mills; Machinery; Plastics & Rubber Products; Petroleum & Coal Products; Miscellaneous Manufacturing*; Computer & Electronic Products; Fabricated Metal Products; Apparel, Leather & Allied Products; Food, Beverage & Tobacco Products; and Furniture & Related Products.
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