ISM reports economic growth to continue in 2018

Economic growth in the U.S. will continue in 2018, say the nation's purchasing and supply management executives in the December 2017 Semiannual Economic Forecast from the Institute for Supply Management® (ISM®), Tempe, Ariz.

Expectations are for a continuation of the economic recovery that began in mid-2009. The manufacturing sector is optimistic about growth in 2018, with revenues expected to increase in 16 manufacturing industries. Capital expenditures, a major driver in the U.S. economy, are expected to increase by 2.7 percent, while the employment base will grow by 1.2 percent.

Seventy percent of survey respondents expect revenues to be greater in 2018 than in 2017. The panel of purchasing and supply executives expects a 5.1 percent net increase in overall revenues for 2018, compared to a 4.6 percent increase predicted for 2017 over 2016 revenues. Respondents expect raw materials pricing pressures in 2018 to increase and expect their profit margins will improve in 2018 over 2017. Manufacturers also are predicting growth in both exports and imports in 2018.

Sixty-four percent of manufacturers surveyed said they had difficulty hiring workers to fill open positions in the past six months, with 44 percent reporting they raised wages to recruit new hires.

While 43 percent of manufacturers surveyed said they do not intend to change capital spending plans for the next 12 months, nearly 40 percent said they will increase spending. Most respondents—66 percent—said they based their spending plans on the general business outlook.