Economic growth is expected to continue in the U.S. throughout the remainder of 2014, say the nation's purchasing and supply executives in their Spring 2014 Semiannual Economic Forecast. Expectations for the remainder of 2014 continue to be positive in both the manufacturing and non-manufacturing sectors.

 

These projections are part of the forecast issued by the Business Survey Committee of the Institute for Supply Management® (ISM). The forecast was presented this week by Bradley J. Holcomb, CPSM, CPSD, chair of the ISM Manufacturing Business Survey Committee, and by Anthony S. Nieves, CPSM, C.P.M., CFPM, chair of the ISM Non-Manufacturing Business Survey Committee.

 

Some 68% percent of respondents from the panel of manufacturing supply management executives predict their revenues will be 9.1% greater in 2014 than in 2013, 9% expect a 9.6% decline, and 23% foresee no change. This yields an overall average expectation of 5.3% revenue growth among manufacturers in 2014, which is a notable increase of 0.9 percentage point from December 2013 when the panel predicted a 4.4% increase in 2014 revenues.

 

With operating capacity at 82.3%, an expected capital expenditure increase of 10.3%, prices paid expected to increase a modest 0.2 percentage point from now through the end of 2014, and employment expected to grow 1.5% for the balance of 2014, manufacturers are positioned to grow revenues while containing costs through the remainder of the year. 

"With all 18 industries within the manufacturing sector predicting growth in 2014 when compared with 2013, U.S. manufacturing continues to demonstrate its broad-based strength, efficiency, and leadership in the world economy," said Holcomb.

 

The 18 industries reporting expectations of growth in revenue for 2014 — listed in order — are: Textile Mills; Printing & Related Support Activities; Furniture & Related Products; Food, Beverage & Tobacco Products; Fabricated Metal Products; Transportation Equipment; Plastics & Rubber Products; Paper Products; Miscellaneous Manufacturing; Nonmetallic Mineral Products; Chemical Products; Computer & Electronic Products; Primary Metals; Petroleum & Coal Products; Electrical Equipment, Appliances & Components; Wood Products; Machinery; and Apparel, Leather & Allied Products.

 

Purchasing and supply managers report that their companies are currently operating at 82.3% of normal capacity, representing an increase from the 80.3% reported in December 2013, as well as an increase from the 80.2% reported in April 2013. The nine industries reporting operating capacity levels at or above the average capacity of 82.3%— listed in order—are: Apparel, Leather & Allied Products; Paper Products; Primary Metals; Wood Products; Computer & Electronic Products; Fabricated Metal Products; Plastics & Rubber Products; Transportation Equipment; and Food, Beverage & Tobacco Products.

 

More information is available online.