US economy to softly expand in 2023; manufacturing to grow: ISM survey

Expectations for the remainder of the year are similar to those expressed in December 2022, despite continued inflation and geopolitical uncertainty.

Manufacturing revenue for 2023 is expected to increase by 1.7 per cent on an average. This is 3.8 percentage points lower than the December 2022 forecast of 5.5 per cent, and 7.6 percentage points lower than the 9.3-per cent year-over-year (YoY) increase reported for 2022.

Forty per cent of respondents say that revenues will increase this year by 11.6 per cent on an average compared to last year. Twenty per cent say revenues will decrease by 14.6 per cent on an average, and 40 per cent indicate no change.

With an operating rate of 82 per cent and projected increases in capital expenditures (0.4 per cent), prices paid for raw materials (2.3 per cent) and employment (0.5 per cent) by the end of this year, manufacturing continues its comeback from the turmoil that began in 2020 and is expected to continue through this year, the institute said in a release.

Ten manufacturing sector industries expect revenue growth in 2023 and 11 industries expect employment growth. Panelists forecast that recovery will continue the rest of the year, albeit somewhat softer than originally expected.

Ten of 18 industries, including textile mills, apparel, and leather & allied products, report projected revenue increases for the rest of 2023.

ALCHEMPro News Desk (DS)