ISM May Semiannual Report calls for growth in 2024, at a reduced rate

As was the case in its previous edition in December, the manufacturing and services sectors remain on diverging paths, to a certain extent, in May. One common theme the sectors share, according to the Institute for Supply Management’s (ISM) May 2024 Semiannual Economic Forecast, which was issued today, is that growth is expected over the balance of the year, albeit at reduced rates.

Data for this report is based on feedback from U.S.-based purchasing and supply chain executives in manufacturing and non-manufacturing sectors.

For manufacturing, ISM is estimating revenues to see a 2.1% increase in 2024, a 3.5% decrease from the December forecast, with 44% of the report’s respondents expecting revenues to rise 8.6%, on average, annually. And 14% expect revenues to fall 12.3%, on average, with 42% expecting revenues to be flat. ISM also noted that 12 of the 18 manufacturing it tracks are calling for revenue improvement in 2024, including: Apparel, Leather & Allied Products; Food, Beverage & Tobacco Products; Transportation Equipment; Computer & Electronic Products; Chemical Products; Nonmetallic Mineral Products; Primary Metals; Textile Mills; Furniture & Related Products; Fabricated Metal Products; Electrical Equipment, Appliances & Components; and Paper Products.

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