According to the Institute for Supply Management (ISM), expectations for the remainder of 2015 continue to be positive in both the manufacturing and non-manufacturing sectors. Projections are part of the forecast issued by the Business Survey Committee of ISM .
Economic growth is expected to continue in the United States throughout the remainder of 2015, say the nation’s purchasing and supply executives in their Spring 2015 Semiannual Economic Forecast.
Fifty-five percent of respondents from the panel of manufacturing supply management executives predict their revenues will be 9 percent greater in 2015 compared to 2014, 16 percent expect an 8.9 percent decline, and 29 percent foresee no change in revenue. This yields an overall average expectation of 3.5 percent revenue growth among manufacturers in 2015, which is a meaningful decrease of 2.1 percentage points from December 2014 when the panel predicted a 5.6 percent increase in 2015 revenues.
With operating capacity at 79.5 percent, an expected capital expenditure increase of 3.1 percent, prices paid for raw materials expected to decrease a 0.9 percentage point for all of 2015 compared to 2014, and employment expected to grow 0.7 percent for the balance of 2015, manufacturing is positioned to grow revenues while containing costs through the remainder of the year. “With 14 of the 18 industries within the manufacturing sector predicting revenue growth in 2015 when compared to 2014, U.S. manufacturing continues to move in a positive direction,” said Holcomb.
The 14 industries reporting expectations of growth in revenue for 2015 — listed in order — are: Nonmetallic Mineral Products; Paper Products; Primary Metals; Furniture & Related Products; Machinery; Textile Mills; Food, Beverage & Tobacco Products; Fabricated Metal Products; Plastics & Rubber Products; Chemical Products; Miscellaneous Manufacturing; Electrical Equipment, Appliances & Components; Computer & Electronic Products; and Transportation Equipment.
Fifty-four percent of non-manufacturing purchasing and supply executives expect their 2015 revenues to be greater by 8.9 percent than in 2014. Overall, respondents currently expect a 2.9 percent net increase in overall revenues, w
“Non-manufacturing will continue to grow for the balance of 2015. Non-manufacturing companies continue to operate very efficiently as reflected by the high percentage of capacity utilization. Supply managers have indicated that overall costs have been minimally impacted with pricing projected to increase 0.6 percent over the year. Overall employment is projected to grow a modest 2 percent. Thirteen out of 18 industries are forecasting increased revenues which is less than the 17 industries that forecasted increased revenues last year. Despite a cooling off in the rate of growth, the non-manufacturing sector will continue on the path of economic growth throughout the year,” Nieves said.hich is less than the 10 percent increase that was forecast in December 2014.
The 13 non-manufacturing industries expecting increases in revenue in 2015 — listed in order — are: Retail Trade; Transportation & Warehousing; Wholesale Trade; Construction; Agriculture, Forestry, Fishing & Hunting; Professional, Scientific & Technical Services; Information; Finance & Insurance; Accommodation & Food Services; Health Care & Social Assistance; Arts, Entertainment & Recreation; Public Administration; and Educational Services.
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