ISM® Reports Economic Improvement to Continue in 2021
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Manufacturing Growth Expected in 2021; Revenue to Increase 6.9%; Capital Expenditures to Increase 2.4%; Capacity Utilization Currently at 85.7%; Services Growth Projected in 2021; Revenue to Increase 1.6%; Capital Expenditures to Increase 12.7%: Capacity Utilization Currently at 86.6%
TEMPE, Ariz., Jan. 19, 2021 /PRNewswire/ Economic improvement in the United States will continue in 2021, say the nation s purchasing and supply management executives in the December 2020
Semiannual Economic Forecast. This expansion will continue a growth trend that began in June 2020, as indicated in the monthly ISM
®
Report On Business
®. Revenues are expected to increase in 15 of 18 manufacturing industries and 12 of 18 services-sector industries. Capital expenditures are expected to increase by 2.4 percent in the manufacturing sector (after a 2.4-percent decline in 2020) and i
1/06/2021 12:32:00 PM
The following graph shows heavy truck sales since 1967 using data from the BEA. The dashed line is the December 2020 seasonally adjusted annual sales rate (SAAR).
Heavy truck sales really collapsed during the great recession, falling to a low of 180 thousand SAAR in May 2009. Then heavy truck sales increased to a new all time high of 575 thousand SAAR in September 2019.
However heavy truck sales started declining in late 2019 due to lower oil prices.
Note: Heavy trucks - trucks more than 14,000 pounds gross vehicle weight.
Click on graph for larger image.
Heavy truck sales really declined towards the end of March due to COVID-19 and the collapse in oil prices, but have since rebounded.
®.
The report was issued today by Anthony Nieves, CPSM, C.P.M., A.P.P., CFPM, Chair of the Institute for Supply Management
® (ISM
®) Services Business Survey Committee: The Services PMI
™ registered 57.2 percent, 1.3 percentage points higher than the November reading of 55.9 percent. This reading represents a seventh straight month of growth for the services sector, which has expanded for all but two of the last 131 months. The Supplier Deliveries Index registered 62.8 percent, up 5.8 percentage points from November s reading of 57 percent. (Supplier Deliveries is the only ISM
®
Report On Business
® index that is inversed; a reading of above 50 percent indicates slower deliveries, which is typical as the economy improves and customer demand increases.)
Does November s Modest Slowdown in U.S. Manufacturing Signal a Cold-season Decline?
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The United States’ manufacturing sector once crippled by factory shutdowns this past spring before rallying with historic growth that accelerated through the early fall appears to be headed for an expected slowdown as the resurgent COVID-19 pandemic forces more consumers into tepid spending activity.
The Institute for Supply Management’s (ISM) monthly manufacturing Purchasing Managers Index (PMI) regarded as a reliable barometer of the U.S. manufacturing economy showed another solid mark for November, albeit a weaker one than October’s, which had the highest reading since September 2018.