ISM Forecast: Growth to Continue in 2011

Nearly two-thirds of surveyed manufacturers expect greater revenues next year than in 2010, according to the semiannual economic forecast released Tuesday by the Institute for Supply Management.

Nominal revenues have increased 7.9% this year and the survey forecast growth of 5.6% in 2011.

"Manufacturing purchasing and supply executives have expectations for continued growth and are optimistic about their organizations' prospects as they consider the first half of 2011, and they are even more positive about the second half," said Norbert J. Ore., chairman of the ISM Manufacturing Business Survey Committee. "While 2010 has been a year of recovery in manufacturing, our forecast sees improvements in both investment and employment in 2011."

Ore said survey respondents expect greater cost pressures next year than in 2010.

Fifty-one percent of non-manufacturing supply management executives expect their 2011 revenues to be greater than in 2010. They currently expect a 3.4% net increase in overall revenues for 2011 compared with a 0.2% increase reported for 2010.

For reprint and licensing requests for this article, click here.
MORE FROM BOND BUYER