AFP, Washington :
US manufacturing and services firms expect to see rising revenues and profits next year, amid a stronger economy and only modest increases in costs, the Institute of Supply Management said Thursday.
The ISM semi-annual economic forecast also showed that companies expect a small increase in employment across both sectors, after a contraction in 2016.
“On the whole we’re looking at a positive year,” said Bradley Holcomb, chair of the ISM Manufacturing Business Survey Committee, which releases a monthly survey of industry purchasing managers.
Manufacturers are expecting revenues to accelerate 4.6 percent next year, after a meager increase of less than one percent this year.
Meanwhile, labor and benefits costs and prices of inputs are expected to rise only modestly in 2017, 2.5 percent and 1.3 percent, respectively.
“These two represent the lion’s share of the cost of manufacturing” so with the expected jump in revenue it means “profit margins will open up and make our companies even healthier as we go forward,” Holcomb told AFP.
Revenues for non-manufacturing companies are expected to jump a similar amount, 4.1 percent.
Hiring is a small bright spot in the forecast as both sectors expect to increase employment after declines this year, but the gains are fairly small: barely a half percent for manufacturing and just over one percent for non-manufacturing companies.
Both sectors are starting to see some reports of trouble finding skilled employees to fill openings, which could put pressure on labor costs in the coming year.
US manufacturing and services firms expect to see rising revenues and profits next year, amid a stronger economy and only modest increases in costs, the Institute of Supply Management said Thursday.
The ISM semi-annual economic forecast also showed that companies expect a small increase in employment across both sectors, after a contraction in 2016.
“On the whole we’re looking at a positive year,” said Bradley Holcomb, chair of the ISM Manufacturing Business Survey Committee, which releases a monthly survey of industry purchasing managers.
Manufacturers are expecting revenues to accelerate 4.6 percent next year, after a meager increase of less than one percent this year.
Meanwhile, labor and benefits costs and prices of inputs are expected to rise only modestly in 2017, 2.5 percent and 1.3 percent, respectively.
“These two represent the lion’s share of the cost of manufacturing” so with the expected jump in revenue it means “profit margins will open up and make our companies even healthier as we go forward,” Holcomb told AFP.
Revenues for non-manufacturing companies are expected to jump a similar amount, 4.1 percent.
Hiring is a small bright spot in the forecast as both sectors expect to increase employment after declines this year, but the gains are fairly small: barely a half percent for manufacturing and just over one percent for non-manufacturing companies.
Both sectors are starting to see some reports of trouble finding skilled employees to fill openings, which could put pressure on labor costs in the coming year.
