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U.S. manufacturing revenue will slip in 2009, while service-sector revenue will tick up, according to the Institute for Supply Management's semiannual economic forecast released today.
In the manufacturing sector, the report estimates a 1.1% decline in revenue in 2009 compared with 2008, according to the ISM's report. It forecast a 2.2% year-over-year decline in revenue in 2008.
"Manufacturing purchasing and supply executives lack their usual optimism about their organizations' prospects as they consider the first half of 2009; however, they are somewhat more positive about the second half," said Norbert Ore, chair of the ISM's manufacturing business survey committee. "While 2008 has been a challenging year overall, we are apparently seeing a rapid halt to the inflationary cycle of the past several years as it relates to manufacturing inputs."
In the service sector, the report estimates a 0.7% year-over-year increase in revenue for 2009, according to the ISM. The report expects a 2.6% year-over-year decrease in 2008.
Service-sector supply management executives' "major economic concerns are: weak economy; credit markets; health care, labor and benefits costs; energy costs; taxes; and interest rates," said Anthony Nieves, chair of the ISM's non-manufacturing business survey committee.