Economic growth to continue in U.S.
Expectations for the remainder of 2018 continue to be positive in both the manufacturing and non-manufacturing sectors.
These projections are part of the forecast issued by the Institute for Supply Management (ISM Business Survey Committees).
Sixty-two percent of respondents from the panel of manufacturing supply management executives predict their revenues, on average, will be 11.6 percent greater in 2018 compared to 2017, 5 percent expect a 11.9 percent decline, and 33 percent foresee no change in revenue.
This yields an overall average forecast of 6.6 percent revenue growth among manufacturers for 2018.
This current prediction is 1.5 percentage points above the December 2017 forecast of 5.1-percent revenue growth for 2018 and is 2.5 percentage points above the actual revenue growth reported for all of 2017.
With operating rate at 85.8 percent, an expected capital expenditure increase of 10.1 percent, an increase of 5 percent for prices paid for raw materials, and employment expected to increase by 1.8 percent by the end of 2018 compared to the end of 2017, manufacturing is positioned to grow revenues while managing costs through the remainder of the year.
The 15 industries reporting expectations of growth in revenue for 2018 — listed in order — are: Miscellaneous Manufacturing; Fabricated Metal Products; Transportation Equipment; Plastics & Rubber Products; Petroleum & Coal Products; Electrical Equipment, Appliances & Components; Computer & Electronic Products; Wood Products; Primary Metals; Machinery; Chemical Products; Paper Products; Furniture & Related Products; Food, Beverage & Tobacco Products; and Nonmetallic Mineral Products.
Forty-nine percent of non-manufacturing purchasing and supply executives expect their 2018 revenues to be greater by 7.1 percent as compared to 2018.
Respondents currently expect a 3.2 percent net increase in overall revenue, which is less than the 6 percent increase that was forecasted in December 2017.
The 16 non-manufacturing industries expecting increases in revenue in 2018 — listed in order — are: Agriculture, Forestry, Fishing & Hunting; Mining; Transportation & Warehousing; Information; Management of Companies & Support Services; Construction; Arts, Entertainment & Recreation; Wholesale Trade; Real Estate, Rental & Leasing; Professional, Scientific & Technical Services; Health Care & Social Assistance; Finance & Insurance; Retail Trade; Utilities; Public Administration; and Accommodation & Food Services. ■