Every quarter, the Manufacturing Barometer explores the current and future state of the industrial manufacturing economy based on interviews with 60-70 senior executives from large, multinational manufacturing companies.
Highlights from the most recent report include:
Optimism fell sharply...again
Optimism about the 12-month outlook for the US economy fell to a low of 29 percent, off 16 points from 45 percent in the previous quarter and less than half of last year's 64 percent. This is the lowest level of optimism since surveying began in 3Q-2003.
Higher energy costs and lack of demand remain the top concerns
Consistent with previous quarters, oil and energy prices are considered the leading barrier to company growth among two-thirds (66 percent) of industrial manufacturers. Concerns over lack of demand (61 percent) and a lower monetary exchange rate (44 percent) both showed significant increases as potential barriers to future growth.
A majority still had a positive outlook on the world economy
Sixty-four percent of manufacturers responding last quarter had a positive outlook on the world economy. It should be noted that interviewing ended prior to the recent sell-offs in international equity markets.
Own-company revenue projections trending down
Manufacturers have, on average, lowered their 12 month revenue targets a full percentage point, from 6.5 percent in the prior quarter to 5.4 percent.
Fewer plan to hire workers
Plans to add employees to the workforce over the next 12 months fell sharply from 52 percent in the previous quarter to 36 percent.
Investment and M&A plans cool
Currently, 42 percent are planning major new investments of capital, off from 57 percent two quarters ago.
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