MNI BRIEF: US ISM Expects Increased Revenues, Sticky Prices
MNI (WASHINGTON) - The U.S. economy will continue to improve in 2025 with an acceleration in manufacturing and continued momentum in services, while price pressures will remain stubbornly strong next year, America's purchasing and supply executives said in the Institute for Supply Management 2025 semiannual economic forecast.
Revenues are expected to increase in 17 of 18 manufacturing industries and 16 of 18 services-sector industries, with revenues expected up 4.2% in manufacturing and 3.9% in services. Employment is expected to grow by 0.8% in manufacturing and 0.8% in services in 2025. (See: MNI INTERVIEW: US Factory Activity On Path For Growth - ISM)
Prices paid in manufacturing are expected to increase by 3% in 2025, the same as in 2024, while labor and benefit costs are expected to increase by 3.3% in 2025. Prices paid in services are expected to increase by 5.3%, up from 5.2% in 2024, and labor and benefit costs are expected to increase 3.5%. Manufacturers foresee the U.S. dollar strengthening versus the currencies of seven major trading partners in 2025.