Economic growth is expected to continue in the United States throughout the remainder of 2011, say the nation's purchasing and supply executives in their spring 2011 Semiannual Economic Forecast. Expectations for the remainder of 2011 have improved in both the manufacturing and non-manufacturing sectors.
Sixty-eight percent of respondents predict revenues will be 13.2% greater, 12% expect a 13.2% decline, and 20% foresee no change. This yields significant expectations for growth in 2011, as manufacturers' net revenues are expected to increase 7.5%. This represents an improvement in expectations from December 2010 when the panel of supply management executives predicted a 5.6% increase in 2011 revenues compared to 2010. With operating capacity improving to 83.2%, an expected capital expenditure increase of 17.9%, and prices paid expected to increase 7.4% for the full year of 2011, manufacturers will be challenged to grow revenues and contain costs through the remainder of the year.
The 17 industries reporting expectations of growth in revenue during the year — listed in order — are: Plastics & Rubber Products; Fabricated Metal Products; Primary Metals; Apparel, Leather & Allied Products; Machinery; Computer & Electronic Products; Transportation Equipment; Food, Beverage & Tobacco Products; Nonmetallic Mineral Products; Printing & Related Support Activities; Wood Products; Chemical Products; Miscellaneous Manufacturing; Textile Mills; Electrical Equipment, Appliances & Components; Furniture & Related Products; and Paper Products.
Learn more about the Institute for Supply Management's (ISM) spring 2011 Semiannual Economic Forecast