TEMPE, Ariz.--(BUSINESS WIRE)--Economic growth in the United States is sustainable throughout the remainder of 2008, say the nation's purchasing and supply executives in their spring 2008 Semiannual Economic Forecast. Expectations for the remainder of 2008 are encouraging in both the manufacturing and non-manufacturing sectors.These projections are part of the forecast issued by the Business Survey Committee of the Institute for Supply Management™ (ISM). The forecast was presented today by Norbert J. Ore, C.P.M., chair of the ISM Manufacturing Business Survey Committee, and group director, strategic sourcing and procurement, Georgia-Pacific LLC; and by Anthony S. Nieves, C.P.M., CFPM, chair of the ISM Non-Manufacturing Business Survey Committee, and senior vice president — supply management, Hilton Hotels Corporation.
Manufacturing Summary
While 42 percent of respondents predict revenues to be 9.2 percent greater in 2008 than in 2007, the overall expected revenue increase is only 1 percent for manufacturing as 31 percent expect a 9.3 percent decline, and 27 percent expect no change. This represents a significant decline in expectations from December 2007 when the panel of supply management executives predicted a 6.8 percent increase in 2008 revenues. With operating capacity at 78.6 percent, expected capital investment growth at 1 percent and prices expected to increase 8.5 percent during 2008, manufacturers will need to focus on cost cutting to offset lower revenue growth and higher input prices.
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