US Manufacturing to Continue Growing in 2018

US manufacturing should continue expanding in 2018, with revenue rising by 5.1% and capital expenditures rising by 2.7%, the Institute for Supply Management (ISM) said on Monday.

Manufacturing employment should grow by 1.2%, the ISM said in its semi-annual economic forecast. The results are based on a survey.

Labour and benefit costs should rise by 2.1%, the ISM said. The US dollar will strengthen against all seven currencies of the nation's major trading partners.

Prices paid for raw materials will rise by 1.3% in the first four months of 2018 before increasing by another 0.5% for the rest of the year, the ISM said. The total should lag behind 2017, which saw raw-material prices rise by 2.1%

Revenue should rise in 16 manufacturing industries, as shown below:

Fabricated Metal Products

Primary Metals

Electrical Equipment, Appliances & Components

Paper Products

Nonmetallic Mineral Products

Textile Mills

Machinery

Chemical Products

Miscellaneous Manufacturing

Food, Beverage & Tobacco Products

Computer & Electronic Products

Furniture & Related Products

Transportation Equipment

Printing & Related Support Activities

Plastics & Rubber Products

Petroleum & Coal Products

Overall, 67% expect 2018 will be better than 2017, while 29% think it will be the same, the ISM said.