In the 72nd semi-annual economic forecast released by the Institute for Supply Management (ISM), purchasing and supply management executives in both the manufacturing and non-manufacturing sectors of the U.S. economy have "relatively high" expectations for 2007.
Nearly three-fourths -- 72% -- of manufacturing-sector executives responding to an ISM survey expect their companies' revenues to be greater in 2007 than in 2006. The purchasing and supply executives expect a 6.4% net increase in overall revenues for 2007, slightly better than the 6.2% increase anticipated for this year. Manufacturing industries expecting the biggest improvement next year include chemicals; transportation equipment; primary metals; food, beverage and tobacco products; computer and electronic products; and electrical equipment, appliances and components.
Capital expenditures are forecast to rise 8.5% in 2007, compared to 7.3% this year.
Seventy-two percent of non-manufacturing sector executives expect 2007 revenues to be greater than 2006's. But the net increase overall is likely to less next year -- 6.4% -- than the 7.7% expected for this year. Non-manufacturing industries with the greatest expected improvement in 2007 include mining; professional, scientific and technical services; wholesale trade; transportation and warehousing; and information.
