The Institute of Supply Management's 2007 Semiannual Economic Forecast reports that economic growth in the U.S. is sustainable throughout the remainder of 2007. In support of that conclusion, 62% of the purchasing managers predict revenues in 2007 will be greater than in 2006.
The manufacturers will increase capital expenditures by 5.8% for the year despite a current operating rate of 82.8%.
"Respondents are optimistic about their organizations' prospects for 2007," said Norbert Ore of ISM. "While 2007 appears to be lagging behind the last three years in terms of manufacturing growth, the forecast indicates manufacturers are investing and foresee revenue improvement in their future."
Production capacity is expected to increase 4% in 2007.
Prices are expected to increase an additional 0.7% which would mean a total price increase of 3.5% for all of 2007.
And employment is expected to increase 0.5% for the rest of 2007.
