According to the Institute for Supply Management’s Spring 2017 semiannual economic forecast, economic growth is expected to continue in the U.S. throughout the remainder of 2017. Expectations for the remainder of 2017 continue to be positive in both the manufacturing and non-manufacturing sectors.

Manufacturing Summary

Sixty-four percent of respondents from the panel of manufacturing supply management executives predict their revenues will be 8.5% greater in 2017 compared to 2016, 12% expect a 9.6% decline and 24% foresee no change in revenue. This yields an overall average forecast of 4.4% revenue growth among manufacturers for 2017. This current prediction is 0.2% below the December 2016 forecast of 4.6% revenue growth for 2017, but is 3.5% above the actual revenue growth reported for all of 2016.

With operating capacity at 82.5%, an expected capital expenditure increase of 5.2%, an increase of 2.5% for prices paid for raw materials and employment expected to increase by 1.3% by the end of 2017 compared to the end of 2016, manufacturing is positioned to grow revenues while managing costs through the remainder of the year.

“With 17 of the 18 industries within the manufacturing sector predicting revenue growth in 2017, when compared to 2016, U.S. manufacturing continues to move in a positive direction,” said Bradley Holcomb, chair of the ISM manufacturing business survey committee.

Non-Manufacturing Summary

Fifty percent of non-manufacturing purchasing and supply executives expect their 2017 revenues to be greater by 10.6% as compared to 2016. Respondents currently expect a 4.1% net increase in overall revenues, which is the same as the forecast from December 2016.

“Non-manufacturing will continue to grow for the balance of 2017. Non-manufacturing companies continue to operate very efficiently as reflected by the high percentage of capacity utilization. Supply managers have indicated that overall prices are projected to increase 1.5% over the year. Overall employment is projected to grow 2.2%. Fourteen out of 18 industries are forecasting increased revenues, which is more than the 13 industries that forecasted increased revenues last year. The non-manufacturing sector will continue economic growth throughout the year,” said Anthony Nieves, chair of the ISM non-manufacturing business survey committee.