A new forecast by the Institute for Supply Management published in the ‘Spring 2020 Semiannual Economic Forecast’ indicates that in the U.S. manufacturing, revenue, capital expenditures and utilization are all expected to contract substantially this year due to the coronavirus pandemic.

However, the same survey reveals a surprisingly buoyant outlook for U.S. apparel and leather industry for the rest of 2020. This upbeat outlook mainly stems from the ability of these two industries to divert their production to the manufacturing of PPE when the pandemic forced their stores to close and orders dwindle, and the potential for new core business now that retail is beginning to reopen.

 

The survey states, in terms of manufacturing industries, the production capacities of 11 industries including textile mills is expected to decrease by 3.6% in 2020. Apparel prices to decrease by 2.8%.

In the December forecast, respondents had predicted a 0.4% increase in prices they paid for products during the first four months of 2020. The industries that they reported an increase in prices included textile mills. These respondents now report a 2.8 decrease in prices in 14 industries that also include apparel, leather and allied products. The prices of products in seven manufacturing industries including textile mills expect their prices to increase in 2020, while 11 industries including apparel, leather and allied products expect prices to decrease.

 

Apparel, leather and allied industries also expect their revenues to grow in 2020. On the other hand, revenues of 15 manufacturing industries including textile mills are expected to contract. The revenues of 18 non-manufacturing industries including agriculture, transportation and warehousing; retail trade and wholesale trade are also expected to fall. The revenues of purchasing and supply management executives in manufacturing business are expected to contract by 10.3%. This is 15.1% lower than the 4.8% increase forecast in December.