Economic growth in the United States will continue in 2015, say the nation’s purchasing and supply management executives in their December 2014 Semiannual Economic Forecast. Expectations are for a continuation of the economic recovery that began in mid-2009, as indicated in the monthly ISM Report On Business. The Manufacturing sector is optimistic about growth in 2015, with revenues expected to increase in 15 Manufacturing industries, and the Non-Manufacturing sector also predicts that 15 of its industries will see higher revenues.

Capital expenditures, a major driver in the U.S. economy, are expected to increase by 3.7 percent in the Manufacturing sector and by 3.8 percent in the Non-Manufacturing sector. Manufacturing expects that its employment base will grow by 1.5 percent, while Non-Manufacturing expects employment growth of 1.7 percent. To follow are excerpts from the report:

Predicted Capital Expenditures - 2015 versus 2014
 
Manufacturing - Purchasing and supply executives expect capital expenditures to increase 3.7 percent in 2015. The 35 percent of respondents who predict increased capital expenditures in 2015 indicate an average increase of 26.6 percent, while the 21 percent who said their capital spending would be reduced predict an average decrease of 27.8 percent. Forty-four percent said they expect to spend the same in 2015 as in 2014. The 13 industries predicting increases in capital expenditures for 2015 — listed in order of percentage increase — are: Textile Mills; Electrical Equipment, Appliances & Components; Food, Beverage & Tobacco Products; Nonmetallic Mineral Products; Wood Products; Transportation Equipment; Plastics & Rubber Products; Printing & Related Support Activities; Chemical Products; Apparel, Leather & Allied Products; Miscellaneous Manufacturing; Primary Metals; and Paper Products.
 
Non-Manufacturing - Non-manufacturing purchasing and supply executives are expecting an increase of 3.8 percent in capital expenditures in 2015, more than the increase of 3.3 percent they are reporting for 2014. The 40 percent of respondents expecting to spend more on capital expenditures predict an average increase of 16.6 percent. An additional 17 percent anticipate a decrease averaging 15.8 percent. Forty-three percent expect to spend the same on capital expenditures in 2015 as in 2014. The 12 industries expecting increases in capital expenditures in 2015 — listed in order of percentage increase — are: Agriculture, Forestry, Fishing & Hunting; Real Estate, Rental & Leasing; Retail Trade; Mining; Professional, Scientific & Technical Services; Arts, Entertainment & Recreation; Public Administration; Transportation & Warehousing; Construction; Wholesale Trade; Information; and Health Care & Social Assistance.

To read the full ISM Economic Forecast, click here.