Growing Economy (Cont’d from Page 1)
increase of 0.5 percent reported for 2020, and a De- cember 2020 projection of an increase of 5.3 percent this year. Forty-four percent of respondents expect ca- pacity increase of, on average, 16.8 percent, 5 percent expect decreases of, on average, 17.3 percent, and 51 percent expect no change. The capacity to produce products or provide services in the services sector is expected to increase 2.3 percent in 2021.This compares to an increase of 0.1 percent re- ported for 2020 and a December 2020 projection of a 3.2 percent increase for this year.Twenty-eight percent of services respondents expect their capacity for 2021 to increase, on average, 11.6 percent, and 4 percent foresee capacity decreasing, on average, 24.2 percent. Sixty-eight percent expect no change in their capacity. Survey respondents expect an 8.7-percent increase in capital expenditures in 2021.This is higher than the 2.4-percent increase for the year forecast by the panel in December 2020. Twenty-seven percent of respon- dents predict increased (on average, 46 percent) capi- tal expenditures in 2021, 16 percent said their capital spending would decrease (on average, 23.9 percent), and 57 percent expect no change in spend in 2021. Services purchasing and supply executives expect a capital-expenditures increase of 5.7 percent in 2021 compared to 2020. The 31 percent of members ex-
Respondents currently expect a 5.4-percent net in- crease in overall revenues, which is 3.8 percentage points higher than the 1.6-percent increase forecast in December 2020. Forty-eight percent of respondents say that revenues for 2021 will increase, on average, 15 percent over 2020. Meanwhile, 11 percent say their revenues will decrease, on average, 16.6 percent, and 41 percent indicate no change.“Services will continue to recover over the rest of 2021. Services companies are currently operating at 89.4 percent of normal ca- pacity. Supply managers have indicated that prices are projected to increase 4.9 percent over the year, reflect- ing increasing inflation. Employment is projected to increase 2.4 percent. At Capacity Purchasing and supply executives report that their companies are operating, on average, at 88.3 percent of normal capacity, 2.6 percentage points higher than the figure reported in December 2020. Purchasing and supply executives report that their organizations are operating on average, 89.4 percent of normal capacity.This is 2.8 percentage points high- er than what was reported in December 2020. Production capacity in manufacturing is expected to increase 6.6 percent in 2021.This compares to an
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Flexo Market News June 7, 2021 3
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