Manufacturers have high hopes for the 2014 U.S economy but is much more cautious about the global economy, according to the Q1 2014 Manufacturing Barometer, released by by PwC US. In fact these feelings have reached the highest level since the fourth quarter of 2005. Where the world economy is concerned, however, caution is the predominant feeling.
Optimism about the U.S. economy rose to 71% in the first quarter of 2014, from 68% in the previous quarter and 55% in the first quarter of 2013, the report states.
Concurrent with the improved sentiment, uncertainty around the domestic outlook has continued to abate among industrial manufacturers, dropping to 27% in the first quarter, representing the lowest level since the first quarter of 2012.
“The level of optimism among industrial manufacturers concerning the direction of the domestic economy continued to rise, with company revenue growth expectations remaining at healthy levels,” said Bobby Bono, PwC’s U.S. industrial manufacturing leader.
“This improved sentiment bodes well for the year ahead, as management teams continue to indicate consistent near-term spending plans, including hiring more workers, supporting new product development and investing in IT and R&D. At the same time, sentiment regarding the outlook for worldwide commerce softened in the early months of 2014, while the level of uncertainty remained elevated. As a result, companies are continuing to focus primarily on investing in core products and services in an effort to expand market share, while taking a cautious approach to longer-term capital investment and overseas expansion.”
More on the economic situation on Material Handling & Logistics.
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