The U.S. economy will continue to softly expand for the rest of 2023, say the nation’s purchasing and supply executives in the Spring 2023 Semiannual Economic Forecast.
These projections are part of the forecast issued by the Institute for Supply Management® (ISM®) Business Survey Committees.
Manufacturing revenue for 2023 is expected to increase, on average, by 1.7%. This is 3.8 percentage points lower than the December 2022 forecast of 5.5%, and 7.6 percentage points lower than the 9.3% year-over-year increase reported for 2022.
With an operating rate of 82% and projected increases in capital expenditures (0.4%), prices paid for raw materials (2.3%) and employment (0.5%) by the end of 2023, manufacturing continues its comeback from the turmoil that began in 2020 and is expected to continue through this year, according to ISM.
Ten of 18 industries report projected revenue increases for the rest of 2023, listed in order: Primary Metals; Printing & Related Support Activities; Apparel, Leather & Allied Products; Electrical Equipment, Appliances & Components; Food, Beverage & Tobacco Products; Transportation Equipment; Machinery; Textile Mills; Miscellaneous Manufacturing; and Petroleum & Coal Products.