Service providers in the United States are forecasting that their revenue growth will almost double next year to 10 percent.
That’s according to a survey by the Institute of Supply Management, which also showed manufacturers projecting increased revenue in 2015.
The service industries’ forecast compares with a 5.1 percent sales gain they reported for 2014, the Tempe, Ariz.-based group said in its semiannnual business outlook survey, which was also picked up by the National Marine Manufacturers Association in its newsletter.
Purchasing managers at factories anticipate that sales will grow 5.6 percent in 2015, up from 3.6 percent this year, according to a Bloomberg report.
A strengthening labor market and a plunge in gasoline prices are giving Americans the ability to keep spending, providing support to manufacturing and service industries. The improvement in demand also bodes well for employment and investment in equipment.
Service providers predicted a 1.7 percent increase in staffing levels in 2015, up from a 1.3 percent gain posted since April. Manufacturers projected a 1.5 percent increase next year, up from a 1.2 percent gain since April.
Purchasing managers in manufacturing plan to increase capital spending by 3.7 percent in 2015, down from a 14.7 percent increase this year. Service industries plan to increase capital investment by 3.8 percent, compared with a 3.3 percent gain this year.