Economic Forecast 2014 – Good News

LAS VEGAS (AP) — The Institute for Supply Management says businesses of all types expect increases in revenue, capital expenditures, employment and production capacity this year.

ISM's latest economic forecast finds optimism in both the manufacturing and service sectors. Brad Holcomb, ISM's manufacturing survey chair, says all 18 manufacturing industries reported expectations of growth in 2014. Capital expenditures are expected to grow by 10.3 percent, revenue by 5.3 percent and employment by 1.5 percent.

ISM non-manufacturing survey chair Tony Nieves saw nearly as much optimism in the service sector. He says 17 of those 18 industries are forecasting revenue growth averaging 2.7 percent. They forecast an increase in capital expenditures of 10.8 percent, suggesting more optimism and confidence than other components of the survey indicate. And employment growth is expected to increase by 1.4 percent.

Summarizing the findings, Holcomb says manufacturing is expected to maintain a positive growth trend in 2014, and Nieves says the non-manufacturing sector is projected to have steady incremental growth for rest of the year.