Manufacturers Predict Continuing Expansion In 2006
Expectations for 2006 are high as 75 percent of survey respondents expect revenues to be greater in 2006 than in 2005. The panel of purchasing and supply executives expects a 5.4 percent net increase in overall revenues for 2006, compared to an increase of 7.3 percent increase reported for 2005. “While 2005 was a particularly strong year overall, it presented challenges with regard to inflationary pressures on manufacturing costs,” said survey Chairman Norbert Ore. “Respondents now expect those pressures to subside somewhat in 2006 based on their overall price forecast. Manufacturing has gained momentum in the past several months with significant strength in new orders and production, and is in its 30th consecutive month of growth as reported in the monthly Manufacturing ISM Report On Business®.”
Respondents are optimistic about the next 12 months, but not as bullish when compared to their response in December 2004. The 57 percent who report a better outlook is less than the 63 percent response received in December 2004. The 35 percent who report that the outlook is the same is up from the 28 percent reported in December 2004, and the 8 percent who indicated the outlook to be worse is lower than the 9 percent reported in December 2004.