PwC’s Manufacturing Barometer: Domestic and World Economic Outlook is Optimistic for U.S. Industrial Manufacturers
NEW YORK — With expectations that economic growth will continue in 2014, U.S. industrial manufacturers expressed optimism about the U.S. economy, and more importantly, toward the broader world economy, which has reached the highest level since the fourth quarter of 2010, according to the Q4 2013 Manufacturing Barometer, released today by PwC US. Looking ahead, respondents appear poised for growth as a majority expect positive revenue gains at their own companies; plans for hiring remain steady; international sales regain momentum; and the headwinds to growth begin to level off.
Optimism regarding the prospects of the U.S. economy during the next 12 months rose among U.S. industrial manufacturers to 68 percent in the fourth quarter of 2013, from 60 percent in the previous quarter. Compared to the fourth quarter of 2012, 20 percent more of the executives surveyed are now optimistic about the domestic economy.
“Optimism regarding the U.S. economy continued to increase in the fourth quarter, while views of the worldwide economy, although improving, remain divided given continuing levels of uncertainty. Our Global Manufacturing Current Assessment and Outlook indices tell us that executives are generally more positive in regard to the economic environments in which they operate, but aren’t seeing significant improvement in financial results to make large investments in their businesses,” said Bobby Bono, U.S. industrial manufacturing leader, PwC. “As we continue to see the global macroeconomic environment improve, we expect U.S. industrial manufacturing executives, bolstered by strong balance sheets, to more aggressively compete for businesses in international markets and increase capital expenditures.”