The US Institute for Supply Management (ISM) expects economic growth to continue throughout the remainder of 2014. In their Spring Economic 2014 Semiannual Economic forecast, US purchasing and supply executives have indicated that they continue to be positive about the outlook for both the manufacturing and non-manufacturing sectors.
Manufacturing
68% of respondents from the panel of manufacturing supply management executives predict their revenues will be 9.1% greater in 2014 compared to 2013, 9% expect a 9.6% decline and 23% foresee no change. The overall average expectation is for 5.3% revenue growth in 2014.
Bradley J. Holcomb, Chair of the ISM Manufacturing Business Survey, said: “With all 18 industries within the manufacturing sector predicting growth in 2014 when compared with 2013, US manufacturing continues to demonstrate its broad based strength, efficiency and leadership in the world economy”.
The 18 industries reporting expectations of growth in revenue for 2014 are:
- Textile mills.
- Printing and related support activities.
- Furniture and related products.
- Food, beverage and tobacco products.
- Fabricated metal products.
- Transportation equipment.
- Plastics and rubber products.
- Paper products.
- Miscellaneous manufacturing.
- Nonmetallic mineral products.
- Chemical products.
- Computer and electronic products.
- Primary metals.
- Petroleum and coal products.
- Electrical equipment, appliances and components.
- Wood products.
- Machinery.
- Apparel, leather and allied products.
Operating rate
Purchasing and supply managers reports that their companies are currently operating at 82.3% of normal capacity, representing an increase from the 80.3% reported in December 2013. This is also an increase from the 80.2% reported in April 2013.
Production capacity
Production capacity in manufacturing is expected to increase 4.8% in 2014. This increase is less than the 6.3% increase predicted in December 2013. According to the ISM, this nevertheless reflects the continuing strength in the sector as 44% of respondents expect an average capacity increase of 12.7%, compared to 8% expecting decreases averaging 11%, and 48% that expect no change.
Adapted from a press release by Emma McAleavey.