Economic growth will continue in the second half of 2002, say the nation's purchasing and supply executives in their 63rd Semiannual Forecast providing insight into both the manufacturing and non-manufacturing sectors of the U.S. economy. These projections are part of the forecast issued by the Business Survey Committees of the Institute for Supply Management (ISM).

Purchasing and supply executives expect their 2002 revenues to grow 2.8% on average over 2001. Manufacturers report operating at 79.3% of normal capacity, up from 77.5% in Dec. 2001. They now predict that capital expenditures will decrease 8.7% in 2002 compared to the Dec. 2001 predication of a 14.4% decrease.

Purchasers also forecast that they will continue to reduce their organization's purchased inventory-to-sales ratio, while expecting manufacturing employment to decline an additional 0.5%. Manufacturing purchasers are predicting growth in exports and imports at accelerating rates, and expect the U.S. dollar to remain strong against the currencies of major trading partners. They predict the prices they pay will increase 2.3% from the present until the end of 2002.