UPDATE 1-U.S. factory revenue to grow in 2011-ISM

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NEW YORK, Dec 7 (BestGrowthStock) – The U.S. manufacturing and
services sectors will grow in 2011, with manufacturing revenue
expected to increase by 5.6 percent, the Institute for Supply
Management said in a semi-annual forecast released on Tuesday.

Revenue in the non-manufacturing sector, which comprises
mostly service sector businesses, is expected to increase by
3.4 percent next year, ISM said in a statement, up sharply from
a 0.2 percent revenue increase in 2010.

Manufacturing revenue rose 7.9 percent in 2010, ISM said.

“While 2010 has been a year of recovery in manufacturing,
our forecast sees improvements in both investment and
employment in 2011,” said Norbert J. Ore, chairman of the ISM
Manufacturing Business Survey Committee.

Capital investment in the factory sector should jump by
14.5 percent next year, up from a 5.9 percent increase reported
for 2010.

Along with increased investment, though, purchasing and
supply executives at manufacturing firms expect to pay higher
prices for materials in 2011, with an overall increase of 4
percent seen on the year, ISM reported.

Most firms also expect the dollar to weaken in 2011 against
the major currencies save the Mexican peso, the survey found. A
weaker dollar usually helps the sector by making U.S. products
cheaper overseas.

Employment in the sector, which grew 7.1 percent in 2010,
is expected to increase by 1.8 percent next year.

Non-manufacturing firms are more optimistic that growth
will pick up in the first half of 2011, “and they have a higher
level of optimism about the next 12 months than they had last
December for 2010,” said Anthony S. Nieves, chairman of the ISM
Non-Manufacturing Business Survey Committee.

After struggling for much of 2010, the U.S. economy has
shown some signs of firmer growth in recent months, though the
recovery remains fragile, with the jobless rate jumping to 9.8
percent in November.

Non-manufacturing sector capital investment is expected to
rise by 3.7 percent. Employment is seen growing at a more
modest 0.3 percent, though, after falling by 2.1 percent in
2010, the survey showed.

(Reporting by Steven C. Johnson; Editing by Andrew Hay)

UPDATE 1-U.S. factory revenue to grow in 2011-ISM