Finance executives in the manufacturing sector are gloomier about the outlook for the U.S. economy in 2008, but more expect higher sales next year amid strong exports, according to an annual survey.
Fewer than half -- 44 percent -- expect the U.S. economy to grow next year, while 20 percent expect a contraction, according to the survey. That compares with 55 percent who expected expansion and 16 percent who expected contraction a year ago when asked about 2007.
About 70 percent of the CFOs polled expect their company's revenues to rise next year, up from 68 percent who said so a year ago, the survey said. CFOs are evenly split on whether the manufacturing sector itself will grow or shrink next year.
The poll of 600 chief financial officers in mid-size and large manufacturers was conducted by Bank of America Business Capital, an asset-based lender that serves manufacturing companies.
The housing market and oil prices are top concerns, the survey found, followed by interest rates, the trade deficit, war in Iraq, and inflation.
Most CFOs expect higher product pricing in 2008, and most of those with international operations plan to expand those operations, according to survey. A majority say U.S. Federal Reserve interest rate cuts have helped the economy and most expect more cuts in the coming year.
About 45 percent expect to grow profit margins during the year.
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