ISM Manufacturing Report Points to a Better Year in 2021

Manufacturing firms in 2021 will see a continuation of the growth trend that began last June, says a new forecast by the Institute for Supply Management. The December 2020 Semiannual Economic Forecast offers an optimistic outlook for revenues, operating capacity, capital expenditures and employment levels in 2021.

“Manufacturing’s purchasing and supply executives expect to see strong growth in 2021,” said Timothy Fiore, chairman of ISM’s Manufacturing Business Survey Committee. “They are optimistic about overall business prospects for the first half of 2021, with business continuing to expand through the second half and at higher rates. Manufacturing experienced seven consecutive months of growth from June through December 2020, with December’s PMI at its highest level since August 2018, the peak of the last manufacturing expansion. Respondents expect an increase in raw materials pricing pressures in 2021, as well as improved profit margins. Wages and employment will also return to growth. Manufacturers also predict growth in both exports and imports in 2021.”