Economic Growth To Continue Throughout 2014, Manufacturing Leads the Charge

Economic growth is expected to continue in the United States throughout the remainder of 2014, say the nation’s purchasing and supply executives in their Spring 2014 Semiannual Economic Forecast.

Expectations for the remainder of 2014 continue to be positive in both the manufacturing and non-manufacturing sectors. Sixty-eight percent of respondents from the panel of manufacturing supply management executives predict their revenues will be 9.1 percent greater in 2014 compared to 2013, nine percent expect a 9.6 percent decline, and 23 percent foresee no change.

This yields an overall average expectation of 5.3 percent revenue growth among manufacturers in 2014, which is a notable increase of 0.9 percentage point from December 2013 when the panel predicted a 4.4 percent increase in 2014 revenues.

With operating capacity at 82.3 percent, an expected capital expenditure increase of 10.3 percent, prices paid expected to increase a modest 0.2 percentage point from now through the end of 2014, and employment expected to grow 1.5 percent for the balance of 2014, manufacturers are positioned to grow revenues while containing costs through the remainder of the year.

“With all 18 industries within the manufacturing sector predicting growth in 2014 when compared to 2013, U.S. manufacturing continues to demonstrate its broad-based strength, efficiency and leadership in the world economy,” said Holcomb.

Fifty-one percent of non-manufacturing purchasing and supply executives expect their 2014 revenues to be greater by 6.7 percent than in 2013. Overall, respondents currently expect a 2.7 percent net increase in overall revenues, which is less than the 3.6 percent increase that was forecast in December 2013.

Category: Featured, General Update, Management