ISM Semiannual Economic Forecast: Manufacturing growth expected in 2010

Economic growth in the U.S. will resume in 2010, said the nation's purchasing and supply management executives in their December 2009 Semiannual Economic Forecast. Expectations for 2010 are for the positive conditions experienced in the second half of 2009 to continue in manufacturing, while the non-manufacturing sector foresees marginal growth.

The overall forecast projects optimism about the U.S. economy for 2010. The manufacturing sector overall is positive about prospects in 2010 with revenues expected to increase in 13 of 18 industries, while the non-manufacturing sector appears slightly less positive about the year ahead with 8 of 18 industries expecting higher revenues. Business investment, a major driver in the U.S. economy, will decline as both sectors expect a combined average of a 5.4 percent decline in capital spending.

The 13 manufacturing industries expecting improvement over 2009 — listed in order — are: Transportation Equipment; Nonmetallic Mineral Products; Printing & Related Support Activities; Computer & Electronic Products; Paper Products; Electrical Equipment, Appliances & Components; Apparel, Leather & Allied Products; Food, Beverage & Tobacco Products; Chemical Products; Machinery; Miscellaneous Manufacturing (items such as medical equipment and supplies, jewelry, sporting goods, toys and office supplies); Textile Mills; and Fabricated Metal Products.

The full report, which includes projections for production, employment, pricing, exports, imports, capital expenditures, and other areas, can be found here.