Manufacturers expect slower economic growth this year, while non-manufacturers expect faster growth for the rest of 2012, according to purchasing and supply executives responding to the Institute for Supply Management spring semiannual economic forecast.
“With 16 out of 18 industries within the manufacturing sector predicting growth in 2012 over 2011, manufacturing continues to demonstrate its strength and resilience in the midst of global economic uncertainty and volatility. Capacity utilization is at historically typical levels and manufacturers are continuing to invest in their businesses.
The positive forecast for revenue growth and modest price increases will drive a continuation of the recovery in the manufacturing sector,” said Bradley J. Holcomb, chairman of the ISM Manufacturing Business Survey Committee.
Anthony S. Nieves, chairman of the ISM Non-Manufacturing Business Survey Committee, said: “Non-manufacturing will continue to grow for the balance of 2012. Non-manufacturing companies reflect strong capacity utilization coupled with forecasted revenue growth. This indicates that non-manufacturing companies are streamlined and efficient. Overall costs have been contained despite strong increases for fuel and petroleum-based products. Slow employment growth continues to be a challenge for the non-manufacturing sector.”