The U.S. economy will resume growing in 2010, with manufacturers expecting sales revenue to increase 5.7% and non-manufacturers expecting 1.3% revenue growth next year, according to the Institute for Supply Management December 2009 Semiannual Economic Forecast released yesterday.
Manufacturers see capital expenditures falling 4%, while non-manufacturers see a 6.7% decline in capital expenditures.
Meanwhile, chief executive officers expect the economy to grow next year, foresee increases in capital expenditures and sales, and predict employment will not improve “significantly,” according to the Business Roundtable’s fourth quarter 2009 CEO Economic Outlook Survey released yesterday.
“The economy is in the throes of a long transition back to health; recovery will be long, extending beyond 2010,” said Ivan G. Seidenberg, chairman of Business Roundtable. “The outlook of our CEOs reflects that reality: we see noticeable gains in sales and capital spending, but employment growth continues to lag.”
The survey respondents expect 1.9% growth in real gross domestic product in 2010. The CEOs identified health care costs as the greatest cost pressure they face next year.