The Institute for Supply Management, perhaps best known for its monthly manufacturing Purchasing Managers Index (PMI), is forecasting solid industry growth for 2021.
The firm shared key findings of its Spring 2021 Semiannual Economic Forecast on May 18, led by expected full-year revenue increase of 7.2% over 2020.
That’s up 0.3 points from ISM’s December 2020 outlook and 8.5 points higher than the 1.3% revenue decrease cited for 2020.
ISM said expectations for the remainder of 2021 have strengthened from December upon hopes that the U.S. has turned the corner on the COVID-19 pandemic.
59% of ISM survey respondents say that 2021 revenues will increase from 2020, and at an average expected gain of 13.8%.
Only 8% said revenues will decrease, with an average expected decline of 13%, while 33% expect no change.
Overall, ISM respondents expect 2021 capital-expenditures to increase 8.7%; an 8.1% increase in prices paid for raw materials; and a 2.8% employment increase.