Optimism in the U.S. Economy Falls Sharply Among Industrial Manufacturers

Optimism in the U.S. economy dropped significantly among industrial manufacturers during the third quarter of this year, according to PricewaterhouseCoopers' Manufacturing Barometer. Less than half of those surveyed -- 45 percent -- are optimistic about the domestic economy, a 17-point drop from the 62 percent level of optimism reported last quarter.

Consistent with previous quarters, high oil and energy prices are the most likely barrier to growth during the next 12 months, cited by 57 percent of the respondents. However, lack of demand (cited by 53 percent), legislative/regulatory pressures (50 percent) and decreasing profitability (48 percent) all showed significant increases as potential barriers to future growth.

"Ongoing concerns about high energy costs are now being coupled with similar concerns about lower demand and decreasing profitability," said Barry Misthal, partner and industrial manufacturing sector leader, PricewaterhouseCoopers. "Mix in uncertainty about legislative and regulatory pressures and it's not hard to see why manufacturers are less optimistic about the U.S. economy. However, healthier international prospects are offsetting these lowered expectations on the domestic front."

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