Industry News: Around the Industry
Manufacturing Barometer Reveals Prevailing Optimism In U.S. Economic Outlook Among U.S. Industrial Manufacturers
Nearly 80 Percent of Manufacturing Executives Predict Revenue Growth in 2013
Sentiment toward the Global Economy Remains Cautious; Overseas Expansion Plans Reduced
Overall Capital Spending Plans Trending Lower
U.S. industrial manufacturers remain positive regarding the outlook for the U.S. economy in the year ahead, while sentiment pertaining to the world economy remains guarded, according to the Q1 2013 Manufacturing Barometer, released today by PwC US. According to PwC’s survey, 55 percent of respondents expressed optimism about the 12-month outlook for the U.S. economy during the first quarter of 2013, up seven points from the fourth quarter, and only five percent were pessimistic.
“Overall sentiment regarding the direction of the domestic economy remained upbeat among U.S. industrial manufacturers in the first quarter,” said Bobby Bono, U.S. industrial manufacturing leader for PwC. “However, management teams are taking a more conservative approach to forecasting top line performance for the year ahead, given the moderate recovery underway and uncertainty pertaining to fiscal policy.”
Reflecting the sustained level of optimism, 78 percent of respondents forecast revenue growth at their own companies for the next 12 months, while only five percent expect negative results. The projected average revenue growth rate in the year ahead also dropped to 4.3 percent in the first quarter of 2013, from 5.2 percent in the fourth quarter of 2012. Still, attitudes pertaining to the outlook for the U.S. continue to contrast with sentiment regarding the international markets, where optimism toward the 12-month outlook was relatively low at 36 percent, with 45 percent expressing uncertainty. In addition, the projected contribution of international sales to total revenue over the next 12 months declined to 32 percent, as compared to 38 percent in the fourth quarter of 2012.
To read the full release, go to http://tinyurl.com/c2lj4wl
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