ISM: Economic Improvement To Continue In U.S. In 2022
the second half (H2) of the year is projected to cool slightly in manufacturing and accelerate in services. These projections are part of the forecast issued by the Business Survey Committee of Institute for Supply Man- agement (ISM). The forecast was released by Timothy R. Fiore, CPSM, C.P.M, Chair of the ISM Manufacturing Busi- ness Survey Committee, and by Anthony S. Nieves, CPSM, C.P.M., A.P.P, CFPM, Chair of the ISM Services Business Survey Committee. Manufacturing Summary Expectations for 2022 are positive, as 65 percent of survey respondents expect revenues to be greater in 2022 than in 2021. The panel of purchasing and supply executives expects a 6.5-percent net increase in overall revenues for 2022, compared to a 14.1-percent increase reported for 2021. Fifteen of the 18 manufacturing indus- tries expect revenue improvement in 2022 “Manufacturing’s purchasing and supply executives
Economic improvement in the United States will continue in 2022, say the nation’s purchasing and supply manage- ment executives in the December 2021 Semiannual Eco- nomic 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 manu- facturing industries and 17 of 18 services-sector indus- tries. Capital expenditures are expected to increase by 7.7 percent in the manufacturing sector (after a 12.1 per- cent increase in 2021) and increase by 10.3 percent in the services sector. The manufacturing employment base is expected to grow by 1 percent following an increase of 3.3 percent in 2021. Compared to the first half (H1), growth in
expect to see strong growth in 2022. They are optimistic about overall business pros- pects for the first half of 2022, with busi- ness continuing to expand through the second half, though at slightly lower rates,” says Fiore. “Manufacturing experienced 18 consecutive months of growth from June 2020 through November 2021, with the composite PMI registering above 60 in nine of the last 12 months of that time frame. Respondents expect raw materials pricing pressure to increase in 2022, as well as im- proved profit margins over H2 2021. Wages and employment will continue high rates of growth as hiring slows. Manufacturers also predict growth in both exports and imports in 2022.” Operating Rate In the manufacturing sector, respon- dents report operating at 88.7 percent of their normal capacity, up 0.4 percentage point from the 88.3 percent reported in May 2021. Purchasing and supply execu- tives predict that capital expenditures will increase by 7.7 percent in 2022 over 2021, compared to the 12.1 percent increase re- ported for 2021 over 2020. Manufacturers expect employment in the sector to grow by one percent in 2022 relative to December 2021 levels, while labor and benefit costs are expected to increase an average of 4.7 percent. Respondents also expect the U.S. dollar to weaken against six of the sev- en currencies of major trading partners in 2022; it is expected to strengthen relative to the Mexican peso. The panel predicts that prices paid for raw materials will increase 8.2 percent
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