Manufacturing Expansion Continues

Expectations for 2006 remain high as 72% of survey respondents to the spring 2006 Semiannual Economic Forecast issued by the Institute for Supply Management, forecast revenues to be greater in 2006 than in 2005. Expectations are higher overall as the panel of purchasing and supply executives now expects a 6.6% net increase in overall revenues for 2006 compared to their December 2005 forecast of 5.4%.

Industries expecting above average improvement in 2006 are: Electronic Components and Equipment; Primary Metals; Instruments and Photographic Equipment and Industrial and Commercial Equipment and Computers.

Production capacity is expected to increase 5.6% in 2006. This is slightly higher than the expected increase of 5.3% predicted in the December 2005 forecast for 2006.

Capital expenditures are expected to rise 6.1% in 2006. This is a significant revision in expectations when compared to the prediction of 9% in the December 2005 forecast for 2006.

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