Tempe / AZ. (ism) Economic improvement in the United States will continue in 2021, say the nation’s purchasing and supply management executives in the December 2020 Semiannual Economic Forecast. This expansion will continue a growth trend that began in June 2020, as indicated in the monthly ISM Report On Business. Revenues are expected to increase in 15 of 18 manufacturing industries and 12 of 18 services-sector industries. Capital expenditures are expected to increase by 2.4 percent in the manufacturing sector (after a 2.4-percent decline in 2020) and increase by 12.7 percent in the services sector. The manufacturing employment base is expected to grow by 2.5 percent following a decline of 2.8 percent in 2019. Growth in the second half (H2) of the year is projected to be stronger than in H1.
These projections are part of the forecast issued by the Business Survey Committee of Institute for Supply Management (ISM). The forecast was released this week by Timothy R. Fiore, CPSM, C.P.M, Chair of the ISM Manufacturing Business Survey Committee, and by Anthony S. Nieves, CPSM, C.P.M., A.P.P, CFPM, Chair of the ISM Services Business Survey Committee.
For additional information please read the Institute’s PDF file below (230 KB).20210120-ISM-ECONOMIC-IMPROVEMENT-2021
About This Report
In addition to the forecast, the Manufacturing ISM Report On Business is issued monthly on the first business day of each month and is considered by many economists to be the most reliable near-term economic barometer available. It is reviewed regularly by top government agencies and economic business leaders. The report, compiled from responses to questions asked of approximately 800 purchasing and supply executives across the country, tracks industrial production, new orders, inventories, supplier deliveries, employment, buying policies and prices. Manufacturing Business Survey Committee responses are divided into the following NAICS code categories: Food, Beverage + Tobacco Products; Textile Mills; Apparel, Leather + Allied Products; Wood Products; Paper Products; Printing + Related Support Activities; Petroleum + Coal Products; Chemical Products; Plastics + Rubber Products; Nonmetallic Mineral Products; Primary Metals; Fabricated Metal Products; Machinery; Computer + Electronic Products; Electrical Equipment, Appliances + Components; Transportation Equipment; Furniture + Related Products; and Miscellaneous Manufacturing (including products such as Medical Equipment + Supplies, Jewelry, Sporting Goods, Toys + Office Supplies).
Covering the non-manufacturing sector, ISM debuted the Non-Manufacturing ISM Report On Business in June 1998. The Non-Manufacturing ISM Report On Business is released on the third business day of each month, and is based on data received from purchasing and supply executives from 18 different non-manufacturing industries across the country. The Non-Manufacturing ISM Report On Business is diversified by NAICS, based on each industry’s contribution to gross domestic product (GDP). The Non-Manufacturing Business Survey Committee responses are divided into the following NAICS code categories: Agriculture, Forestry, Fishing + Hunting; Mining; Utilities; Construction; Wholesale Trade; Retail Trade; Transportation + Warehousing; Information; Finance + Insurance; Real Estate, Rental + Leasing; Professional, Scientific + Technical Services; Management of Companies + Support Services; Educational Services; Health Care + Social Assistance; Arts, Entertainment + Recreation; Accommodation + Food Services; Other Services(including Equipment + Machinery Repairing; Promoting or Administering Religious Activities; Grant making; Advocacy; and Providing Dry-Cleaning + Laundry Services, Personal Care Services, Death Care Services, Pet Care Services, Photofinishing Services, Temporary Parking Services, and Dating Services); and Public Administration. The report covers business activity, new orders, backlog of orders, new export orders, inventory change, inventory sentiment, imports, prices, employment, and supplier deliveries.
About Institute for Supply Management
Institute for Supply Management (ISM) serves supply management professionals in more than 90 countries. Its 50,000 members around the world manage about USD 1 trillion in corporate and government supply chain procurement annually. Founded in 1915 as the first supply management institute in the world, ISM is committed to advancing the practice of supply management to drive value and competitive advantage for its members, contributing to a prosperous and sustainable world. ISM leads the profession through the ISM Report On Business, its highly regarded certification programs and the newly launched ISM Mastery Model. This report has been issued by the association since 1931, except for a four-year interruption during World War II.