Pricewaterhouse Coopers released the results of its quarterly survey of industrial manufacturers, who have downgraded their growth expectations for the next 12 months, citing oil and energy costs and competition from foreign markets, as well as high interest rates and unfavorable exchange rates. On the U.S. side, 62% expect growth in the domestic economy.
However, manufacturers are quite optimistic about the global economy, with 78% of respondents expecting growth over the next 12 months. This is not surprising based on earnings reports I see on a day-to-day basis; respondents expect their international sales to increase, on average, to 35% of total revenue over the next 12 months. That's up from 27% a year ago, and corresponds with reports across the board of growing sales by global distributors and manufacturers outside of the U.S. What are you, as distributors, doing in response to this shift?
For the survey, PricewaterhouseCoopers interviewed 61 U.S.-based industrial manufacturing executives.
- More than half of respondents are planning new investments of capital in the next 12 months, partly due to strong M&A plans.
- Though the majority plan to add workers, those who are planning to reduce will do so in larger numbers.
In other news, the second-quarter advance GDP estimate has been released. The government estimates growth of 3.4%, much higher than the 0.6% growth in the first quarter 2007. Find economic indicators, updated monthly, at the MDM Databank.
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