U.S. manufacturing, services set for rising profits in 2017Staff Writer | December 12, 2016
U.S. manufacturing and services firms expect to see rising revenues and profits next year, the Institute of Supply Management said.
America The ISM semi-annual economic forecast
Manufacturers are expecting revenues to accelerate 4.6 percent next year, after a meager increase of less than one percent this year.
Meanwhile, labor and benefits costs and prices of inputs are expected to rise only modestly in 2017, 2.5 percent and 1.3 percent, respectively.
Revenues for non-manufacturing companies are expected to jump a similar amount, 4.1 percent.
Hiring is a small bright spot in the forecast as both sectors expect to increase employment after declines this year, but the gains are fairly small: barely a half percent for manufacturing and just over 1 percent for non-manufacturing companies.
Both sectors are starting to see some reports of trouble finding skilled employees to fill openings, which could put pressure on labor costs in the coming year. ■