Manufacturing growth to continue in 2014

Economic growth is expected to continue in the U.S. throughout the remainder of 2014, according to the Spring 2014 Semiannual Economic Forecast, released by the Business Survey Committee of the Institute for Supply Management® (ISM®), Tempe, Ariz. Expectations for the remainder of the year continue to be positive in the manufacturing sector.

Sixty-eight percent of respondents from the panel of manufacturing supply management executives predict their revenues will be 9.1 percent greater in 2014 compared to 2013, 9 percent expect a 9.6 percent decline, and 23 percent foresee no change. This yields an overall average expectation of 5.3 percent revenue growth among manufacturers in 2014, which is an increase of 0.9 percentage point from December 2013.

With operating capacity at 82.3 percent, an expected capital expenditure increase of 10.3 percent, 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 percent for the balance of 2014, manufacturers are positioned to grow revenues while containing costs through the remainder of the year.