Uncertainty supplants optimism among manufacturers

Uncertainty has replaced optimism as the prevailing view of the U.S. economy over the next 12 months among industrial products manufacturing executives, according to the Q3 2010 PwC US Manufacturing Barometer report released today by PricewaterhouseCoopers.

Looking at the next 12 months, the majority (52 percent) of industrial products manufacturers surveyed are uncertain about the U.S. economy. Thirty-five percent are optimistic, down 10 points from the prior quarter, and only 13 percent are pessimistic. Uncertainty also dominates the 12-month outlook for the world economy among those marketing abroad, with 38 percent optimistic about its prospects, and 51 percent uncertain. Only 11 percent are pessimistic.

In Q3 2010, 27 percent of panelists viewed the U.S. economy as growing, down 31 points from the prior quarter. However, only 20 percent believed it was declining. The majority believed the U.S. economy did not change from Q2 2010. Of international marketers, 43 percent viewed the world economy as growing in the third quarter, similar to the 45 percent reported last quarter. Only 16 percent believed it was declining, and 41 percent felt it was unchanged.

International sales showed improvement in the third quarter of 2010 for U.S.-based industrial manufacturers selling abroad, with 44 percent reporting an increase in sales, and only 10 percent reporting a decrease. For the third straight quarter, legislative/regulatory pressures ranked highest among perceived barriers to growth over the next 12 months, rising 14 points to 77 percent.

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