ISM® Forecasts Continued Economic Growth in 2025
ISM forecasts steady economic growth in 2025 with manufacturing revenue up 4.2% and capital expenditures rising by 5.2%, while the services sector is also set to grow.
Published on April 13, 2025
The Institute for Supply Management (ISM) has released its latest forecast, predicting that 2025 will bring steady economic improvement. According to the report, the manufacturing sector is expected to see revenue growth of 4.2% along with a 5.2% rise in capital expenditures, while the services sector should experience a 3.9% increase in revenue and a 5.1% boost in capital spending. This optimistic outlook, detailed in the December 2024 release, highlights anticipated improvements in profit margins and employment levels across both sectors.
Recent supplemental reports from various sources have noted short-term challenges—such as a contraction in US factory activity during March 2025 due to tariff uncertainties—but these factors have not dampened ISM’s longer-term projections. With manufacturers and supply executives remaining confident despite recent volatility, the broader economic forecast for 2025 continues to lean toward sustained growth as the market adjusts and rebounds over the coming months.