The Institute for Supply Management’s semi-annual forecast showed factory purchasing managers see capital spending jumping 10.1 percent in 2018, well above the 2.7-percent projection made in the last report released in December.
Service providers project investment will climb 6.8 percent, up from 3.8 percent. Employment plans ticked up for manufacturers and were unchanged in services from the prior survey.
The report also showed a small share cited tax legislation as the driver for capital spending plans, though more than in the previous survey taken before the law was enacted. For most, the general business outlook spurred their decisions.
A special question showed large majorities of purchasing managers reported difficulty hiring for open positions in the past six months, but just 53 percent in manufacturing said they had raised wages to attract workers. At service providers, only 36 percent boosted pay.
