A recent report from the Institute for Supply Management (ISM) has indications that the manufacturing sector will lead growth in the overall economy during 2012. The ISM report shows that most manufacturing forecasting plans show growth in purchases (an anticipated 5.5% growth for 2012) and in capital investment (an anticipated 1.9$ growth for 2012. While growth during 2012 is anticipated, it might not be to the same extent as what actually occurred in 2011. However, growth is growth, and it is far better than the alternative. The ISM report is also forecasting an increase in sales of approximately 7% and an increase in employment of approximately 1.3% for 2012.
“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.”
Justin Hayes is an accountant in Katz, Sapper & Miller's Audit and Assurance Services Department, which is comprised of individuals skilled at evaluating business and control risks for clients.