ISM: Economic Decline To Continue For Rest Of 2009

[AlphaCentauri]

Source: WSJ

Purchasing managers expect the economy to continue to decline for the rest of 2009, according to the semiannual outlook survey released Tuesday by the Institute for Supply Management.

Expectations for the remainder of 2009 have weakened in both the manufacturing and non-manufacturing sectors compared with sentiments expressed in December 2008 when the ISM did its last semiannual survey.

The gloomier tone of the ISM outlook contrasts with the growing belief among economists that the recession is easing up in the second quarter. Indeed, the ISM's own reports on business activity within the factory and nonmanufacturing sectors showed improvement in April.

Purchasing managers in manufacturing forecast an overall revenue decline of 14.7%, representing a drop in expectations from December 2008 when a 1.1% fall in 2009 revenues was expected.

Capital spending is projected to plunge 22.7%, and prices are expected to fall 5.3% during 2009.

Manufacturing purchasers expect employment in the sector will drop 2.6% over the balance of 2009.

Within the non-manufacturing sector, the ISM survey indicated that, on net, revenues are expected drop 5.1% in 2009, a switch from the 0.7% increase expected in December.

Nonmanufacturers forecast their employment will decrease 6.4% over the balance of 2009.



Read more: http://online.wsj.com/article/BT-CO-20090505-712034.html