After a strong start to the year, the economic recovery across the U.S. is projected to continue for the rest of 2021, according to a survey of purchasing and supply executives.
The Institute for Supply Management’s (ISM) spring survey said expectations for the remainder of 2021 have strengthened somewhat compared to December as there is hope that the corner has been turned on the COVID-19 pandemic. As a result, both manufacturing and services sectors are primed for expansion the rest of the year.
The Spring 2021 Semiannual Economic Forecast, which was released Tuesday by the ISM’s Business Survey Committees, said manufacturing revenue would increase by 7.2% this year, which would be 8.5% higher than the 1.3% decrease reported for 2020 over 2019. Capital expenditures are expected to increase by 8.7%.
All 18 manufacturing industries are expecting increases in revenue in 2021 which are: Nonmetallic Mineral Products; Fabricated Metal Products; Miscellaneous Manufacturing; Apparel, Leather & Allied Products; Machinery; Wood Products; Computer & Electronic Products; Chemical Products; Electrical Equipment, Appliances & Components; Food, Beverage & Tobacco Products; Plastics & Rubber Products; Primary Metals; Transportation Equipment; Furniture & Related Products; Paper Products; Printing & Related Support Activities; Textile Mills; and Petroleum & Coal Products.
Net services revenue is projected to increase 5.4% for the rest of this year, which is 3.8% higher than the 1.6% increase forecast in December 2020. For services, capital expenditures are projected to increase by 5.7%
The 16 services industries that expect revenue increases in 2021 are: Arts, Entertainment & Recreation; Mining; Wholesale Trade; Professional, Scientific & Technical Services; Management of Companies & Support Services; Information; Transportation & Warehousing; Educational Services; Health Care & Social Assistance; Retail Trade; Other Services; Accommodation & Food Services; Agriculture, Forestry, Fishing & Hunting; Finance & Insurance; Construction; and Public Administration.