A new ISM report indicates growth expectations for both manufacturing and services sectors in 2025. According to the findings, manufacturing revenue is projected to increase by 4.2%, while services revenue is projected to grow by 3.9%. ISM Manufacturing Business Survey committee chair Tim Fiore joins Catalysts to analyze these projections.
Fiore describes the outlook as "very positive," predicting that 2025 will be "significantly better" than 2024 for these sectors, particularly in the latter half of the year.
However, Fiore considers the forecast conservative. "I was expecting that the number would be closer to 6 or 7% for 2025 given the fact now that we have an administration that is business friendly," he explains. He attributes the more modest projection to ongoing uncertainty surrounding upcoming fiscal policy.
"I think the forecast being a little bit more conservative here reflects the fact that there's a whole bunch of stuff that are outside the business community control," he tells Yahoo Finance. However, he notes that, "They know it's going to be a growth year. How strong will it be? We'll see."
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This post was written by Angel Smith