Expectations for 2005 remain high as 72% of manufacturing executives surveyed by the Institute for Supply Management (ISM) in its biennial economic “Report on Business®” forecast revenues to be greater in 2005 than in 2004. However, expectations declined a bit from the last survey as the panel of purchasing and supply executives now expects a 6.8% net increase in overall revenues for 2005 compared to a 7.8% revenue growth forecast in December 2004.
The latest survey, released in early May, found manufacturing executives reporting that their companies are currently operating at 86.8% of normal capacity. This is an increase from December 2004 (83%) and greater than the rate reported in April 2004 (85.6%), though slightly less than the 10-year high reported in May 2000 (87.4%). Recent monthly data from the Manufacturing ISM “Report on Business” indicates the manufacturing sector has grown for 23 consecutive months.