NEW YORK Economic growth is expected to continue for the rest of the year, with revenue in the manufacturing and services sectors seen rising more than 4 percent, according to an industry report released on Tuesday.
Manufacturing revenue is expected to increase 4.5 percent in 2012 from the year before, the semi-annual forecast from The Institute for Supply Management (ISM) said.
Sixteen out of 18 industries within the sector predicted growth for this year, which shows that "manufacturing continues to demonstrate its strength and resilience in the midst of global economic uncertainty and volatility," Bradley Holcomb, chair of the ISM Manufacturing Business Survey Committee, said in a statement.
Revenue in non-manufacturing firms, which is made up mostly of service sector businesses, was seen doing even better at 4.8 percent.
Capital investment among manufacturing firms is seen rising 6.2 percent this year, and climbing 3.6 percent in the service sector.
Price increases for 2012 so far were relatively modest for both sectors, despite a run-up in oil prices earlier in the year. Prices rose 1.9 percent for the manufacturing sector though the end of April, while services saw a 1.8 percent increase.
Manufacturing prices are expected to rise 2.3 percent for the full year, and services prices are seen gaining 2.6 percent in 2012.
Employment gains were also expected to be small. Manufacturing employment was anticipated to rise just 1.4 percent for the rest of the year, while service sector jobs were seen rising 1.9 percent.
(Reporting By Leah Schnurr; Editing by Chizu Nomiyama)