ISM® Reports Economic Improvement To Continue: Apparel, Leather & Allied Products; Textile Mills; Furniture & Related Products Report Projected Revenue Increases

TEMPE, Ariz. — May 15, 2024 —

SUMMARY

Manufacturing

  • Operating rate is 82.8 percent of normal capacity.
  • Production capacity is expected to increase 2.4 percent in 2024.
  • Capital expenditures are expected to increase 1 percent in 2024.
  • Prices paid increased 1.6 percent through April 2024.
  • Prices of raw materials are expected to increase a total of 1.9 percent for all of 2024, indicating an expected increase of 0.3 percentage point for the rest of the year.
  • Manufacturing employment is expected to increase 0.3 percent in 2024.
  • Manufacturing revenues are expected to increase 2.1 percent in 2024.
  • The manufacturing sector is expected to grow slightly in 2024.

Services

  • Operating rate is 88.6 percent of normal capacity.
  • Production capacity is expected to increase 2.6 percent in 2024.
  • Capital expenditures are expected to increase 1.4 percent in 2024.
  • Prices paid increased 2.3 percent through April 2024.
  • Prices of raw materials are expected to increase a total of 3.2 percent for all of 2024, indicating expectations of continuing inflation.
  • Services employment is expected to increase 0.8 percent in 2024.
  • Services revenues are expected to increase 2.9 percent in 2024.
  • The services sector is projected to grow slightly in 2024.

The U.S. economy will continue to softly expand for the rest of 2024, say the nation’s purchasing and supply executives in the Spring 2024 Semiannual Economic Forecast. Expectations for the remainder of 2024 are similar to those expressed in December 2023, despite continued inflation concerns and geopolitical uncertainty.

These projections are part of the forecast issued by the Institute for Supply Management® (ISM®) Business Survey Committees. The forecast was presented today by Timothy R. Fiore, CPSM, C.P.M., Chair of the ISM Manufacturing Business Survey Committee, and Anthony S. Nieves, CPSM, C.P.M., A.P.P., CFPM, Chair of the ISM Services Business Survey Committee.

Manufacturing Summary
Revenue for 2024 is expected to increase, on average, by 2.1 percent. This is 3.5 percentage points lower than the December 2023 forecast of 5.6 percent, and 1.2 percentage points higher than the 0.9-percentage point year-over-year increase reported for 2023. Forty-four percent of respondents say that revenues for 2024 will increase, on average, 8.6 percent compared to 2023. Fourteen percent say revenues will decrease (12.3 percent, on average), and 42 percent indicate no change. With an operating rate of 82.8 percent and projected increases in capital expenditures (1 percent), prices paid for raw materials (1.9 percent) and employment (0.3 percent) by the end of 2024, the manufacturing sector continues its comeback from the turmoil that began in 2020. “With 12 manufacturing industries expecting revenue growth in 2024 and nine industries expecting employment growth in 2024, panelists forecast that recovery will continue the rest of the year, albeit somewhat softer than originally expected. Sentiment in each industry was generally consistent with performance reports in the April 2024 Manufacturing ISM® Report On Business®, as well as the fall Semiannual Economic Forecast conducted in December,” says Fiore.

Twelve of 18 industries report projected revenue increases for the rest of 2024, listed in order: 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.

Services Summary
Respondents expect a 2.9-percent net increase in overall revenues, which is 4 percentage points lower than the 6.9-percent increase forecast in December 2023. Thirty-six percent of respondents say that revenues for 2024 will increase, on average, 10.3 percent compared to 2023. Meanwhile, 10 percent expect their revenues to decrease (7.5 percent, on average), and 54 percent indicate no change. “The services sector will continue to grow for the rest of 2024. Services companies are currently operating at 88.6 percent of normal capacity. Supply managers indicate that prices are expected to increase 3.2 percent over the year, reflecting increasing inflation. Employment is projected to increase 0.8 percent. Thirteen industries forecast increased revenues, down from the 16 industries that predicted increases in December 2023,” says Nieves.

Thirteen of 18 industries expect revenue increases in 2024, listed in order: Retail Trade; Mining; Transportation & Warehousing; Other Services; Management of Companies & Support Services; Accommodation & Food Services; Professional, Scientific & Technical Services; Construction; Wholesale Trade; Public Administration; Utilities; Information; and Finance & Insurance.

OPERATING RATE

Manufacturing
Purchasing and supply executives report that their companies are operating, on average, at 82.8 percent of normal capacity, 0.2 percentage point lower than the figure reported in December 2023. The 10 industries reporting operating capacity levels above the average rate of 82.8 percent — listed in order — are: Paper Products; Textile Mills; Petroleum & Coal Products; Transportation Equipment; Computer & Electronic Products; Wood Products; Machinery; Primary Metals; Food, Beverage & Tobacco Products; and Fabricated Metal Products.

Services
Organizations are operating, on average, at 88.6 percent of normal capacity, according to Business Survey Committee respondents. This is 2.1 percentage points higher compared to December 2023. The eight industries operating at capacity levels above the average rate of 88.6 percent — listed in order — are: Educational Services; Other Services; Finance & Insurance; Retail Trade; Utilities; Agriculture, Forestry, Fishing & Hunting; Construction; and Public Administration.

 Operating Rate
Manufacturing Services
May
2023
Dec
2023
May
2024
May

2023

Dec

2023

May

2024

90%+ 41 % 42 % 40 % 69 % 48 % 54 %
50%-89% 55 % 53 % 57 % 30 % 51 % 45 %
Below 50% 4 % 5 % 3 % 1 % 1 % 1 %
Overall Average 82.0 % 83.0 % 82.8 % 91.0 % 86.5 % 88.6 %

PRODUCTION CAPACITY

Manufacturing
Production capacity is expected to increase 2.4 percent in 2024; in December, panelists reported an increase of 0.7 percentage point for 2023 and projected an increase of 7.8 percent this year. Thirty percent of respondents expect capacity increases of, on average, 12.6 percent; 7 percent expect decreases of, on average, 19.7 percent; and 62 percent expect no change. The 12 industries expecting production capacity increases for 2024 — listed in order — are: Nonmetallic Mineral Products; Furniture & Related Products; Computer & Electronic Products; Food, Beverage & Tobacco Products; Fabricated Metal Products; Primary Metals; Chemical Products; Plastics & Rubber Products; Petroleum & Coal Products; Transportation Equipment; Electrical Equipment, Appliances & Components; and Paper Products.

Manufacturing Production Capacity
For 2023 For 2024 For 2024
Reported
Dec 2023
Magnitude
of Change
Predicted

Dec 2023

Magnitude
of Change
Predicted
May 2024
Magnitude
of Change
Higher 35 % +9.8 % 44 % +10.5 % 30 % +12.6 %
Same 47 % NA 52 % NA 62 % NA
Lower 18 % -17.4 % 4 % -22.8 % 8 % -19.7 %
Net Average +0.7 % +7.8 % +2.4 %

Services
The capacity to produce products or provide services in the services sector is expected to increase 2.6 percent in 2024. This compares to an increase of 3.9 percent reported for 2023 and a December projection of a 4.1-percent increase for this year. Sixteen percent of services respondents expect their capacity for 2024 to increase, on average, 17.6 percent, and 2 percent foresee capacity decreasing, on average, 11.2 percent. Eighty-two percent expect no change in capacity. The 14 industries expecting production capacity increases for 2024 — listed in order — are: Retail Trade; Mining; Professional, Scientific & Technical Services; Construction; Transportation & Warehousing; Arts, Entertainment & Recreation; Accommodation & Food Services; Wholesale Trade; Information; Management of Companies & Support Services; Public Administration; Health Care & Social Assistance; Utilities; and Finance & Insurance.

Services Production or Provision Capacity
For 2023 For 2024 For 2024
Reported

Dec 2023

Magnitude
of Change
Predicted

Dec 2023

Magnitude
of Change
Predicted
May 2024
Magnitude
of Change
Higher 31 % +14.6 % 47 % +9.3 % 16 % +17.6 %
Same 64 % NA 50 % NA 82 % NA
Lower 5 % -12.3 % 3 % -9.6 % 2 % -11.2 %
Net Average +3.9 % +4.1 % +2.6 %

PREDICTED CAPITAL EXPENDITURES — 2024 vs. 2023

Manufacturing
Survey respondents expect a 1-percent increase in capital expenditures in 2024, much lower than the 11.9 percent increase forecast by the panel in December. Twenty-four percent of respondents predict increased (on average, 19.8 percent) capital expenditures in 2024, 14 percent said their capital spending would decrease (on average, 26.2 percent), and 62 percent expect no change. The 10 industries expecting capital expenditure increases for 2024 — listed in order — are: Food, Beverage & Tobacco Products; Furniture & Related Products; Nonmetallic Mineral Products; Primary Metals; Fabricated Metal Products; Petroleum & Coal Products; Chemical Products; Paper Products; Transportation Equipment; and Machinery.

Services
This year, services purchasing and supply executives expect capital expenditures to increase 1.4 percent compared to 2023. The 25 percent of respondents expecting to spend more predict an average increase of 16 percent, 12 percent anticipate an average decrease of 20.8 percent, and 63 percent expect no change in capital expenditures in 2024. The 10 industries expecting an increase in capital expenditures — listed in order — are: Public Administration; Utilities; Retail Trade; Accommodation & Food Services; Mining; Transportation & Warehousing; Professional, Scientific & Technical Services; Educational Services; Construction; and Finance & Insurance.

Predicted Capital Expenditures 2024 vs. 2023
Manufacturing Services
Predicted

Dec 2023

Predicted
May 2024
Magnitude
of Change
Predicted

Dec 2023

Predicted
May 2024
Magnitude
of Change
Higher 35 % 24 % +19.8 % 40 % 25 % +16.0 %
Same 43 % 62 % NA 38 % 63 % NA
Lower 22 % 14 % -26.2 % 22 % 12 % -20.8 %
Net Average +11.9 % +1.0 % +2.9 % +1.4 %

PRICES — Changes Between End of 2023 and May 2024

Manufacturing
In the December forecast, respondents predicted an increase of 3.2 percent in prices paid during the first four months of 2024; they now report prices increased by 1.6 percent. The 45 percent who say their prices are higher now than at the end of 2023 report an average increase of 5.8 percent, while 17 percent reported lower prices (by 6 percent, on average). The remaining 39 percent indicated no change for the period. Seventeen manufacturing industries reported an increase in prices paid for the first part of 2024, listed in order: Textile Mills; Printing & Related Support Activities; Apparel, Leather & Allied Products; Plastics & Rubber Products; Nonmetallic Mineral Products; Primary Metals; Paper Products; Chemical Products; Computer & Electronic Products; Machinery; Miscellaneous Manufacturing; Fabricated Metal Products; Petroleum & Coal Products; Electrical Equipment, Appliances & Components; Transportation Equipment; Furniture & Related Products; and Food, Beverage & Tobacco Products.

Services
Services respondents report that purchases during the first four months of this year cost an average of 2.3 percent more than at the end of 2023. This is 1.4 percentage points less than the 3.7-percent increase predicted in December. Forty-six percent of services respondents report that prices increased, on average, 6.7 percent; 11 percent report price decreases of, on average, 7.2 percent; and 43 percent indicate no change. Fourteen of 18 industries reported an increase in prices paid in the first part of 2024, listed in order: Public Administration; Management of Companies & Support Services; Utilities; Retail Trade; Professional, Scientific & Technical Services; Transportation & Warehousing; Construction; Educational Services; Finance & Insurance; Health Care & Social Assistance; Wholesale Trade; Arts, Entertainment & Recreation; Other Services; and Information.

Prices — Changes Between End of 2023 and May 2024
Manufacturing Services
Predicted

Dec 2023

Reported
May 2024
Magnitude
of Change
Predicted

Dec 2023

Reported
May 2024
Magnitude
of Change
Higher 49 % 45 % +5.8 % 61 % 46 % +6.7 %
Same 29 % 39 % NA 27 % 43 % NA
Lower 22 % 16 % -6.0 % 12 % 11 % -7.2 %
Net Average +3.2 % +1.6 % +3.7 % +2.3 %

PRICES — Predicted Changes Between End of 2023 and End of 2024

Manufacturing
Survey respondents expect a year-over-year, net-average prices increase of 1.9 percent for 2024. With respondents reporting price increases of 1.6 percent through April 2024, prices are projected to increase slightly for the rest of the year. Forty-seven percent of respondents project prices to increase, on average, 6.1 percent for the full year, 20 percent anticipate a decrease (5.2 percent, on average), and 33 percent expect no change. The 15 industries expect price increases for all of 2024, listed in order are: Textile Mills; Apparel, Leather & Allied Products; Primary Metals; Plastics & Rubber Products; Nonmetallic Mineral Products; Chemical Products; Paper Products; Furniture & Related Products; Fabricated Metal Products; Transportation Equipment; Miscellaneous Manufacturing; Petroleum & Coal Products; Computer & Electronic Products; Electrical Equipment, Appliances & Components; and Machinery.

Services
This year, services respondents expect prices to increase, on average, 3.2 percent compared to the end of 2023. With respondents reporting an increase of 2.3 percent through April 2024, prices are projected to increase over the rest of the year. Forty-eight of respondents anticipate increases of, on average, 7.2 percent; 7 percent expect decreases of, on average, 5 percent; and 45 percent do not expect prices to change. Fifteen of 18 industries project price increases for all of 2024, listed in order: Public Administration; Retail Trade; Arts, Entertainment & Recreation; Utilities; Wholesale Trade; Management of Companies & Support Services; Construction; Health Care & Social Assistance; Professional, Scientific & Technical Services; Educational Services; Finance & Insurance; Transportation & Warehousing; Accommodation & Food Services; Information; and Other Services.

Prices — Predicted Changes Between End of 2023 and End of 2024
Manufacturing Services
Predicted

Dec 2023

Predicted
May 2024
Magnitude
of Change
Predicted

Dec 2023

Predicted
May 2024
Magnitude
of Change
Higher 52 % 47 % +6.1 % 59 % 48 % +7.2 %
Same 24 % 33 % NA 27 % 45 % NA
Lower 24 % 20 % -5.2 % 14 % 7 % -5.0 %
Net Average +3.3 % +1.9 % +3.4 % +3.2 %

EMPLOYMENT

Employment — Predicted Changes Between End of 2023 and End of 2024

Manufacturing
ISM’s Manufacturing Business Survey Committee respondents forecast that sector employment in 2024 will increase 0.3 percentage point year over year. Twenty-three percent of respondents expect employment to be, on average, 7.4 percent higher; 15 percent predict employment to decrease, on average, 8.7 percent; and 62 percent expect employment levels to be unchanged. The nine industries projecting employment growth during 2024 — listed in order — are: Nonmetallic Mineral Products; Food, Beverage & Tobacco Products; Primary Metals; Plastics & Rubber Products; Petroleum & Coal Products; Fabricated Metal Products; Textile Mills; Computer & Electronic Products; and Chemical Products.

Services
Sector employment will increase 0.8 percent in 2024, according to the forecast of ISM’s Services Business Survey Committee respondents. For the remaining months of the year, 25 percent expect employment to increase, on average, 5.2 percent; 8 percent anticipate employment to decrease, on average, 7 percent; and 67 percent expect no change in employment levels. The 13 industries anticipating increases in employment — listed in order — are: Other Services; Retail Trade; Accommodation & Food Services; Mining; Arts, Entertainment & Recreation; Construction; Transportation & Warehousing; Utilities; Public Administration; Health Care & Social Assistance; Wholesale Trade; Real Estate, Rental & Leasing; and Professional, Scientific & Technical Services.

Employment — Predicted Changes Between End of 2023 and End of 2024
Manufacturing Services
Predicted
for 2024

Dec 2023

Predicted

May 2024

Magnitude
of Change
Predicted
for 2024

Dec 2023

Predicted

May 2024

Magnitude
of Change
Higher 33 % 23 % +7.4 % 29 % 25 % +5.2 %
Same 50 % 62 % NA 55 % 67 % NA
Lower 17 % 15 % -8.7 % 16 % 8 % -7.0 %
Net Average +2.0 % +0.3 % +0.8 % +0.8 %

BUSINESS REVENUES

Business Revenues Comparison — 2024 vs. 2023

Manufacturing
Increased revenues are expected this year, as purchasing and supply management executives predict an overall net increase of 2.1 percent compared to 2023. This is 3.5 percentage points lower than the 5.6-percent increase forecast in December, and 1.2 percentage points higher than the 0.9-percentage point year-over-year increase reported for 2023. Forty-four percent of respondents say that revenues for 2024 will increase, on average, 8.6 percent; 14 percent say their revenues will decrease, on average, 12.3 percent; and 42 percent forecast no change. The 12 manufacturing industries expecting increases in revenue in 2024 — listed in order — are: 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.

Manufacturing Business Revenue
2023 vs. 2022 2024 vs. 2023
Reported

Dec 2023

 

% Change

Predicted

Dec 2023

% Change Predicted

May 2024

% Change
Higher 41 % +9.9 % 58 % +9.2 % 44 % +8.6 %
Same 31 % NA 29 % NA 42 % NA
Lower 28 % -12.5 % 13 % -10.3 % 14 % -12.3 %
Net Average +0.9 % +5.6 % +2.1 %

Services
This year, services purchasing and supply management executives predict a net increase of 2.9 percent in sector business revenue compared to 2023. This is 4 percentage points lower than the 6.9-percent increase forecast in December, and 1.3 percentage points lower than the 4.2-percent increase reported for 2023. Thirty-six percent of respondents indicate revenues for 2024 will increase, on average, 10.3 percent; 10 percent say their revenues will decrease, on average, 7.5 percent; and 54 percent expect no change. Thirteen of 18 services industries project revenue increases in 2024, listed in order: Retail Trade; Mining; Transportation & Warehousing; Other Services; Management of Companies & Support Services; Accommodation & Food Services; Professional, Scientific & Technical Services; Construction; Wholesale Trade; Public Administration; Utilities; Information; and Finance & Insurance.

Services Business Revenue
2023 vs. 2022 2024 vs. 2023
Reported

Dec 2023

 

% Change

Predicted

Dec 2023

 

% Change

Predicted

May 2024

% Change
Higher 46 % +19.4 % 43 % +17.2 % 36 % +10.3 %
Same 31 % NA 52 % NA 54 % NA
Lower 23 % -21.6 % 5 % -9.2 % 10 % -7.5 %
Net Average +4.2 % +6.9 % +2.9 %

SPECIAL QUESTION TOPIC No. 1: HIRING WORKERS TO FILL OPEN POSITIONS

We asked the panel, “In the past six months, has your organization had difficulty hiring workers to fill open positions?”

Answer options:

Yes, we have had difficulty hiring

No, we have not had difficulty hiring

No, we are reducing head count or keeping it flat

No, we have not had any open positions

No, we are on a hiring freeze.

Respondents indicated:

Hiring Workers to Fill Open Positions
Manufacturing Services
Reported
May
2023
Reported
Dec
2023
Reported
May
2024
Reported
May
2023
Reported
Dec
2023
Reported
May
2024
We have had difficulty hiring 67 % 59 % 49 % 67 % 75 % 56 %
We have not had difficulty 26 % 37 % 30 % 22 % 21 % 28 %
No, we are reducing head count or keeping it flat

 

14 % 8 %
No, we have not had any open positions

 

2 % 4 % 5 % 5 % 4 % 5 %
No, we are on a hiring freeze 5 % 3 % 6 % 2 %

SPECIAL QUESTION TOPIC No. 2: HIRING DIFFICULTIES

We asked the panel, “If ‘yes,’ what have you done to deal with these difficulties?”

Answer options:

We raised wages (or used other forms of monetary compensation) to recruit new hires

We didn’t hire/were not able to hire as many workers as we would have liked

We lowered our hiring standards

Something else.

Respondents indicated:

“If ‘yes,’ what have you done to deal with these difficulties?”
Manufacturing Services
Reported
May
2023
Reported
Dec
2023
Reported
May
2024
Reported
May
2023
Reported
Dec
2023
Reported
May
2024
We raised wages 47 % 51 % 45 % 41 % 43 % 38 %
We didn’t hire as many as we would have liked 34 % 22 % 31 % 33 % 43 % 29 %
We weren’t trying to hire new workers 10 %
We lowered our hiring standards 5 % 6 % 6 % 4 % 6 % 4 %
Something else 14 % 11 % 18 % 21 % 8 % 29 %

SPECIAL QUESTION TOPIC No. 3: NO HIRING DIFFICULTIES

We asked the panel, “If you have not had difficulty hiring, why not?”

Answer options:

We raised wages in order to attract the applicants we needed

We didn’t have difficulty hiring because we weren’t trying to hire new workers

The local labor market is not that tight; it was easy to find an ample supply of applicants

We lowered our hiring standards

Something else.

Respondents indicated:

“If you have not had difficulty hiring, why not?”
Manufacturing Services
Reported
May
2023
Reported
Dec
2023
Reported
May
2024
Reported
May
2023
Reported
Dec
2023
Reported
May
2024
We raised wages 38 % 40 % 30 % 25 % 36 % 33 %
We weren’t trying to hire new workers 18 % 23 % 27 % 13 % 23 % 21 %
It was easy to find an ample supply of applicants 19 % 4 % 21 % 17 % 6 % 12 %
We lowered our hiring standards 3 % 21 % 3 % 1 % 19 % 1 %
Something else 23 % 12 % 18 % 44 % 16 % 33 %

SPECIAL QUESTION TOPIC No. 4: NO HIRING DIFFICULTIES

We asked the panel, “If ‘no, we’re reducing head count or keeping it flat,’ how?”

Answer options:

Reduced head count via layoffs

Reduced head count via attrition

Freezing hiring and holding on to qualified labor (but not filling vacated positions)

Freezing hiring, but refilling vacated positions

Something else.

Respondents indicated:

If “no, we’re reducing head count or keeping it flat,” how?
Manufacturing Services
 Reported May 2024  Reported May 2024
Reduced head count via layoffs 16 % 12 %
Reduced head count via attrition 23 % 16 %
Freezing hiring and holding on to qualified labor (but not filling vacated positions) 22 % 17 %
Freezing hiring, but refilling vacated positions 17 % 18 %
Something else 22 % 37 %

SPECIAL QUESTION TOPIC No. 5 and 6: SUPPLY CHAIN PROBLEMS

We asked the panel, “Do you anticipate supply chain problems for the third quarter (Q3) and fourth quarter (Q4) to be better, the same or worse?”

Respondents indicated:

Supply Chain Problems Q3 & Q4
Manufacturing Services
Q3

2024

Q4

2024

Q3

2024

Q4

2024

Better 20 % 24 % 14 % 17 %
Same 68 % 63 % 79 % 72 %
Worse 12 % 13 % 7 % 11 %
Diffusion Index 54 % 55 % 53 % 53 %

SPECIAL QUESTION TOPIC No. 7: CAUSE OF SUPPLY CHAIN DISRUPTIONS

We asked the panel, “What is the cause of most of the supply chain disruptions in the manufacturing sector?”

Answer options:

Foreign developments, foreign sourced microchips

Foreign developments, foreign sourced minerals

Foreign developments, other foreign sourced supplies

Other foreign developments

Domestic developments, port delays

Domestic developments, lack of truck drivers

Domestic developments, domestically produced supplies

Other domestic developments.

Respondents indicated:

Supply Chain Disruptions
Manufacturing Services
Reported
May 2024
Reported
May 2024
Foreign developments, foreign sourced microchips 7 % 5 %
Foreign developments, foreign sourced minerals 11 % 5 %
Foreign developments, other foreign sourced supplies 21 % 17 %
Other foreign developments 10 % 9 %
Domestic developments, port delays 8 % 9 %
Domestic developments, lack of truck drivers 3 % 8 %
Domestic developments, domestically produced supplies 27 % 16 %
Other domestic developments 13 % 31 %

SPECIAL QUESTION TOPIC No. 8: WHY ARE CAPITAL EXPENDITURES INCREASING?

We asked the panel, “If your organization is increasing capital expenditures (CapEx), what are the main reason(s)? Rank all options (use 0 if they do not apply), using 1 for most important, 2 for second most important, and so on.”

Respondents indicated, based on average ranking for each option:

Cause of Increases
Manufacturing Services
Reported May 2024 Reported May 2024
My organization does not plan to increase its capital expenditures 1.79 1.92
Catch up for postponed capacity investment 2.14 1.86
Increased domestic demand 2.01 1.58
Increased foreign demand 3.06 3.06
Federal government programs/incentives (for example, the CHIPS and Science Act or Inflation Reduction Act) 2.70 2.28
State government programs/incentives 4.63 2.74
Increased defense spending 3.83 4.60
Other 3.67 3.34

SPECIAL QUESTION TOPIC No. 9: IS DEMAND MEETING EXPECTATIONS?

We asked the panel, “How would you define your current demand?”

Respondents indicated:

Current Demand Sentiment
Manufacturing Services
Reported May 2024 Reported May 2024
Meets expectations 51 % 62 %
Exceeds expectations 17 % 15 %
Does not meet expectations 32 % 23 %

 

Posted: May 15, 2024

Source: Institute for Supply Management

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