Wednesday, December 7, 2011

U.S. Manufacturers Seen Leading Growth in 2012, ISM Says

Bloomberg
December 06, 2011,
By Bob Willis
 
(Updates with 2011 figures in fifth paragraph.)
Dec. 6 (Bloomberg) -- U.S. manufacturers are more optimistic about sales, spending and hiring for next year than service companies, a sign factories will remain at the forefront of the economic expansion, according to the Institute for Supply Management.
Purchasing managers at factories anticipate sales will grow 5.5 percent next year and capital investment will increase 1.9 percent, the Tempe, Arizona-based group’s semiannual forecast showed today. Revenue and spending will increase at a slower pace among service providers, which account for about 90 percent of the economy.
“Manufacturing has demonstrated its resilience throughout this challenging economic recovery period, with consistent growth dating back to August of 2009,” Bradley Holcomb, chairman of the group’s factory survey, said in a statement. Manufacturers “expect to see continued growth in 2012.”

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