ISM: U.S. Economic Growth to Continue in 2011

Purchasing and supply management experts expect economic growth in the United States will continue in 2011, according to the Semiannual Economic Forecast released by the Institute for Supply Management.

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The manufacturing sector continues to outpace the non-manufacturing sector and has greater expectations for growth in terms of revenue, according to the study. In fact, the study projects increased revenues in 16 of 18 manufacturing industries. And 65 percent of those participating in the study expect this year's revenues to increase compared to 2010.

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Tempering this optimistic outlook is the fact that respondents expect cost pressures in 2011 to be somewhat greater than in 2010. Manufacturing growth is now in its 16th consecutive month as measured by and reported in the monthly Manufacturing ISM "Report On Business."

The non-manufacturing sector projects higher revenues in 12 of 18 industries. Fifty-one percent of non-manufacturing supply management executives expect their 2011 revenues to be greater than in 2010.

Respondents in non-manufacturing industries expect the prices they pay for materials and services will increase by 3.1 percent during 2011. They also forecast their overall labor and benefit costs will increase 1.1 percent for 2011.

Business investment will increase substantially in the manufacturing sector, while investment in the non-manufacturing sector will increase at a lower level, according to the study.
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