Manufacturers expect 4.6% growth next year, while non-manufacturers predict 4.1% revenue growth, according to the Institute for Supply Management's semiannual economic forecast, released Thursday.
Manufacturers reported 0.9% growth in 2016, while non-manufacturers saw 2.7% revenue growth, ISM said.
Manufacturing expects its employment base to grow 0.6% in 2017, while non-manufacturing sees 1.2%employment growth.
Two-thirds of manufacturers responding predicted revenues to grow next year.
"Manufacturing purchasing and supply executives expect to see growth in 2017. They are optimistic about their overall business prospects for the first half of 2017, and are slightly more optimistic about the second half of 2017," said Bradley Holcomb, chair of the ISM manufacturing business survey committee. "In 2016, manufacturing experienced eight months of growth overall from January through November."
More than half (57%) of responding non-manufacturing supply management executives expect 2017 revenues to surpass 2016.
"Non-manufacturing supply managers' report operating at 85.2 percent of their normal capacity, lower than the 86.5 percent reported in April 2016. They are optimistic about continued growth in the first half of 2017 compared to the second half of 2016 even though there are some projected decreases in growth rate and capital reinvestment." said Anthony Nieves, chair of the ISM non-manufacturing business survey committee. "They forecast that their capacity to produce products and provide services will rise by 3 percent during 2017, and capital expenditures will decrease by 0.2 percent from 2016 levels."
