ISM Forecasts Broad Economic Expansion Through 2026, Signalling Positive Outlook for Maritime Trade

## ISM Projects Sustained Economic Growth Through 2026 The Institute for Supply Management (ISM) has released its latest economic outlook, forecasting expansion across both manufacturing and services sectors through 2026 — a development that maritime industry stakeholders will be watching closely as a key indicator of future cargo volumes and trade flows. According to ISM's report, the manufacturing sector is expected to expand in 2026, with revenues projected to increase by 8.4% and capital expenditures forecast to rise 4.9%. Capacity utilisation in the sector is anticipated to reach 86.9%, suggesting robust industrial output that typically translates into increased demand for raw material imports and finished goods exports. The services sector is forecast to outpace manufacturing in several metrics, with revenue growth projected at 8.6% and capital expenditure increases of 6.4%. Services capacity utilisation is expected to reach 91.3%, reflecting a broad-based economic momentum that underpins consumer spending and, by extension, containerised trade volumes. ### Implications for Shipping and Ports For the maritime industry, ISM's projections carry meaningful weight. Manufacturing expansion typically drives demand for bulk commodities — including steel, grain, and energy products — while rising consumer-oriented services activity supports container shipping volumes on major trade lanes. Higher capital expenditure forecasts across both sectors may also signal increased movement of industrial equipment, machinery, and project cargo, segments that are particularly significant for breakbulk and heavy-lift operators. Port operators and terminal planners will similarly take note of the capacity utilisation figures. At 86.9% for manufacturing and 91.3% for services, both sectors are operating at levels that historically precede investment in new production capacity — a dynamic that can generate sustained, rather than cyclical, freight demand. ### Broader Context The ISM outlook arrives at a time when the global shipping industry is navigating a complex environment, including ongoing geopolitical disruptions to key trade routes, evolving fuel transition requirements, and shifting supply chain strategies among major importers and exporters. Positive macroeconomic signals from a leading indicator such as ISM provide a degree of confidence for carriers, charterers, and logistics providers planning capacity and contract strategies into the medium term. The ISM report was released from Tempe, Arizona, and is based on survey data drawn from supply management professionals across the United States.