U.S. manufacturing executives expect to see significant improvement in business by the second half of next year, but forecast that spending by their firms will drop sharply in 2002, the National Association of Purchasing Management (NAPM) said today.
NAPM said 59% of purchasing managers see their firms' revenues being higher in 2002 than in 2001. But the report said manufacturers were less than bullish for the first half of next year and said they expect employment to fall 0.5% in the next 12 months.
Manufacturing spending was forecast to fall 14.4% in 2002 versus 2001 while capital expenditures by non-manufacturing firms were seen falling 3%, NAPM’s report said. The survey of purchasing managers also found that most saw the outlook for 2001 holiday retail sales not as bright as either last year or in 1999.