Manufacturing economic growth should continue through the rest of 2017, according to a forecast issued today by the Institute for Supply Management (ISM; Tempe, AZ).
The semi-annual forecast and report is based on a survey of purchasing and supply executives across 18 industries.
ISM said the respondents expect an average revenue increase for the year of 4.4%, compared with 2016. The group said 64% of respondents expect an average revenue increase of 8.5%. Another 12% of respondents expect a 9.6% decline while 24% expect no change in revenue.
The institute said representatives of 17 industries expect a revenue boost for the year.
Today’s report included the following details:
Operating rate: Manufacturing executives participating in the survey said their companies are operating at an average 82.5% of normal capacity, up from a forecast of 81.9% in December. Eleven industries are operating above the average, including petroleum and coal products, miscellaneous manufacturing and chemical products, ISM said.
Production capacity: Executives expect capacity to rise 3.3% this year, less than a forecast of 4.2% issued in December. Fifteen industries expect to boost capacity, including fabricated metal products, miscellaneous manufacturing, petroleum and coal products, miscellaneous manufacturing and machinery.
Capital spending: Executives said they expect to boost capital expenditures by an average of 5.2% in 2017, up from 0.2% in December. Representatives of 11 industries expect such increases, including fabricated metal products and petroleum and coal products.
Employment: Respondents said they expected manufacturing employment to rise 1.3% this year. The predictions ranged widely. ISM said 35% of respondents expect employment to increase an average of 6.3%, 12% expect an average job reduction of 7.3%. Another 53% expect jobs to be unchanged.