US manufacturing to continue growing in 2018 – ISM

11 December 2017 17:17 Source:ICIS News

HOUSTON (ICIS)--US manufacturing should continue expanding in 2018, with revenue rising by 5.1% and capital expenditures rising by 2.7%, the Institute for Supply Management (ISM) said on Monday.

Manufacturing employment should grow by 1.2%, the ISM said in its semi-annual economic forecast. The results are based on a survey.

Labour and benefit costs should rise by 2.1%, the ISM said. The US dollar will strengthen against all seven currencies of the nation's major trading partners.

Prices paid for raw materials will rise by 1.3% in the first four months of 2018 before increasing by another 0.5% for the rest of the year, the ISM said. The total should lag behind 2017, which saw raw-material prices rise by 2.1%

Revenue should rise in 16 manufacturing industries, as shown below:

Fabricated Metal Products Primary Metals
Electrical Equipment, Appliances & Components Paper Products
Nonmetallic Mineral Products Textile Mills
Machinery Chemical Products
Miscellaneous Manufacturing Food, Beverage & Tobacco Products
Computer & Electronic Products Furniture & Related Products
Transportation Equipment Printing & Related Support Activities
Plastics & Rubber Products Petroleum & Coal Products

Overall, 67% expect 2018 will be better than 2017, while 29% think it will be the same, the ISM said.

By Al Greenwood