INDUSTRY REPORT SERIES
The U.S. economy will continue to expand for the rest of 2022, say the nation’s purchasing and supply executives in the Spring 2022 Semiannual Economic Forecast. Expectations for the remainder for 2022 are similar to those expressed in December 2021, despite continued inflation and geopolitical unrest.
The Services PMI® registered 55.3.
Summary
Manufacturing
Revenue for 2022 is expected to increase, on average, by 9.2 percent. This is 2.7 percentage points higher than the December 2021 forecast of 6.5 percent, and 4.9 percentage points lower than the 14.1-percent year-over-year increase reported for 2021.
- Operating rate is 87.2 percent of normal capacity.
- Production capacity is expected to increase 5.8 percent in 2022.
- Capital expenditures are expected to increase 7.4 percent in 2022.
- Prices paid increased 11.4 percent through April 2022.
- Prices of raw materials are expected to increase a total of 11.1 percent for all of 2022, indicating an expected decrease of 0.3 percentage point for the rest of the year.
- Manufacturing employment is expected to increase 3.2 percent in 2022.
- Manufacturing revenues are expected to increase 9.2 percent in 2022.
- The manufacturing sector is expected to grow in 2022.
Services
Respondents expect a 4.9-percent net increase in overall revenues, which is 0.6 percentage point higher than the 4.3-percent increase forecast in December 2021. Forty-eight percent of respondents say that revenues for 2022 will increase, on average, 13.4 percent compared to 2021.
- Operating rate is 91 percent of normal capacity.
- Production capacity is expected to increase 1.2 percent in 2022.
- Capital expenditures are expected to increase 6.2 percent in 2022.
- Prices paid increased 8.7 percent through April 2022.
- Prices of raw materials are expected to increase a total of 9.6 percent for all of 2022, indicating expectations of continuing inflation.
- Services employment is expected to increase 2.5 percent in 2022.
- Services revenues are expected to increase 4.9 percent in 2022.