Economic growth is expected to continue in the U.S. 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.
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These projections are part of the forecast issued by the Business Survey Committee of the Institute for Supply Management (ISM).
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 through the end of 2010. Overall, 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, ISM said in its report.
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.
In the non-manufacturing part of the report, forty-four percent of non-manufacturing purchasing and supply executives expect their 2010 revenues to be greater by 6.4 percent than in 2009. Overall, respondents currently expect a 0.3 percent net increase in overall revenues, which is lower than the 1.3 percent increase that was forecast in December 2009.
The 10 non-manufacturing industries expecting increases in revenue in 2010 – listed in order – are: Finance & Insurance; Other Services**; Wholesale Trade; Agriculture, Forestry, Fishing & Hunting; Information; Management of Companies & Support Services; Professional, Scientific & Technical Services; Transportation & Warehousing; Utilities; and Retail Trade.
