ISM Report On Business®
January 2008, Inside Supply Management® Vol. 19, No. 1, page 14
Semiannual Forecast: December 2007
Economic growth in the United States will continue in 2008, say the nation's purchasing and supply management executives in their December 2007 Semiannual Economic Forecast. Both the manufacturing and non-manufacturing sectors are optimistic about 2008, although expectations for 2008 are at a higher level for the manufacturing sector than for the non-manufacturing sector. The complete Semiannual Economic Forecast, released December 11, 2007, can be found at www.ism.ws.
Manufacturing purchasing and supply executives are mostly optimistic about their organizations' prospects for the first half of 2008, and predict additional growth during the second half. While 2007 was a good year overall, it presented significant challenges with regard to energy costs and overall inflation in manufacturing input costs. Respondents expect cost pressures to subside somewhat in the second half of 2008 based on their overall price forecast. However, the trend is definitely toward slower growth.
Non-manufacturing supply managers report they are cautiously optimistic about continued growth in the first half of 2008 compared to the second half of 2007. They forecast that their capacity to produce products and provide services will increase during 2008, and capital expenditures will decrease from the 2007 level. Overall attitude of non-manufacturing supply managers: cautiously optimistic, with 73 percent of respondents predicting 2008 will be equal to or better than 2007.