Capital spending and production by U.S. manufacturers will continue to grow in 2018, albeit at a slower pace than what was seen in 2017, according to the latest survey results from the Institute of Supply Management (ISM). Manufacturers will see 2.7% growth in both production capacity and capital expenditures next year, the group said Monday in a press release.

Manufacturing production capacity increased 4.3% in 2017, exceeding a 3.3% growth prediction that was made in May, according to the ISM. Meanwhile, capital expenditures increased 8.7% on average in 2017 when compared with 2016, greatly exceeding a 5.2% growth prediction that was made in May.

ISM Manufacturing Business Survey Committee Chairman Timothy Fiore said, "Manufacturing purchasing and supply executives expect to see growth in 2018. They are optimistic about their overall business prospects for the first half of 2018, with business continuing to expand through the second half of 2018."

Sixty-seven percent of the ISM survey respondents said they believe 2018 will be better than 2017, according to the ISM.

"Expectations for 2018 are positive, as 70% of survey respondents expect revenues to be greater in 2018 than in 2017," the ISM said. "The panel of purchasing and supply executives expects a 5.1% net increase in overall revenues for 2018, compared to a 4.6% increase predicted for 2017 over 2016 revenues."

Manufacturing purchasing and supply executives reported their companies are operating at 85.8% of normal capacity, up from 82.5% in May 2017, and 81.9% in December 2016.

Industrial Info is tracking more than $110 billion in active U.S. Manufacturing Industry that are expected to kick off in 2017. By sector, transportation system projects lead with $62 billion in potential kickoffs next year, followed by distribution & warehousing at more than $17 billion, and automotive projects at $11 billion.

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