Purchasing and supply management executives predicted in the December 2014 Semiannual Economic Forecast that the U.S. economy will continue to grow in 2015. The manufacturing sector is optimistic about the expected growth in 2015 and it expects revenues to increase in 15 manufacturing industries. Non-manufacturing has the same expectations that 15 of its industries will see higher revenues.
Capital expenditures, a major driver of the U.S. economy, are expected to increase by 3.7% in the manufacturing sector and 3.8% in the non-manufacturing sector. In terms of employment, manufacturing is expected to grow by 1.5% and non-manufacturing is expected to grow 1.7%.
Expectations for 2015 are positive as 67% of survey respondents expect revenues to be greater in 2015 than in 2014. The panel of purchasing and supply executives expects a 5.6% net increase in overall revenues for 2015, compared to a 3.6% increase reported for 2014 over 2013 revenues.
Bradley Holcomb, chair of the ISM Manufacturing Business Survey Committee, said:
Manufacturing purchasing and supply executives expect to see continued growth in 2015. They are optimistic about their overall business prospects for the first half of 2015, and are similarly optimistic about the second half of 2015. Manufacturing experienced 18 consecutive months of growth from June 2013 through November 2014, as reported in the monthly Manufacturing ISM Report On Business, and our forecast calls for a continuation of growth in 2015, building on the momentum reported in 2014. Respondents expect raw materials pricing pressures in 2015 to be low, similar to levels experienced in 2014, and expect their margins will improve in 2015. Manufacturers are also predicting growth in both exports and imports in 2015 over 2014.
Out of the non-manufacturing supply management executives, 62% expect their 2015 revenues to be greater than in 2014. They currently expect a 10% net increase in overall revenues for 2015 compared to a 5.1% increase reported for 2014 over 2013 revenues.
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Anthony Nieves, the chair of the ISM Non-Manufacturing Business Survey Committee, said:
Non-manufacturing supply managers report operating at 87.6 percent of their normal capacity, higher than the 86.3 percent reported in April 2014. They are optimistic about continued growth in the first half of 2015 compared to the second half of 2014, and they have a higher level of optimism about the next 12 months than they had last December for 2014. They forecast that their capacity to produce products and provide services will rise by 4.3 percent during 2015, and capital expenditures will increase by 3.8 percent from 2014 levels. Non-manufacturers also predict their employment will increase by 1.7 percent during 2015.
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