#584 – ISM Semiannual ReportPosted on
Last week we shared some not-so-good manufacturing news. But this week, we received a positive report from the May 2016 Semiannual Economic Forecast from the Institute for Supply Management.
ISM semiannual report calls for manufacturing and non-manufacturing growth over rest of 2016
By Jeff Berman, Group News Editor, May 19, 2016
Even though there are myriad indications that the economy has lost some of its footing in recent months, the May 2016 Semiannual Economic Forecast issued by the Institute for Supply Management (ISM) indicates that prospects for growth remain fully intact.
Data for these reports is based on feedback from U.S.-based purchasing and supply chain executives in manufacturing and non-manufacturing sectors.
On the manufacturing side, ISM said revenue is expected to rise by 2.8 percent in 2016, which is down from a 4.1 percent December estimate, with 50 percent of respondents expecting revenues to rise by 10.5 percent or more in 2016 annually. And 14 of the 18 reporting manufacturing sectors in the report are calling for 2016 revenue growth. Capital expenditures are pegged to rise 1.0 percent, which is in line with December’s 1.0 percent estimate, and capacity utilization is at 81.7 percent, edging December’s 81.6 percent.
Manufacturing production capacity is expected to head up 3.0 percent in 2016, topping the 1.9 percent December estimate.