Manufacturers ' survey shows flagging confidence

SBJ Staff

Posted online June 8, 2008 | 11:00 pm

Results from the National Association of Manufacturers/Industry Week Manufacturing Index, released May 5, show that confidence among large manufacturers eroded in the first quarter of 2008 to the lowest level in five years, with sales expectations falling to their lowest level since the second quarter of 2001.

According to a news release, 57 percent of large and 70 percent of small manufacturing companies who responded to the quarterly NAM survey had a positive business outlook for their firm in the first quarter of 2008, though economic concerns are indicated.

Nearly two-thirds of respondents indicated that current conditions for their companies are better than conditions in 2000–01. Seventeen percent classified current conditions as “similar” and 22 percent said conditions have worsened.

A key finding of the first quarter survey is that a growing number of export-oriented companies are more optimistic.

Of manufacturers that expect at least 25 percent of their company’s sales growth this year to come from exports, 81 percent reported a positive business outlook, compared to 60 percent of businesses that don’t export.

Export-oriented companies also had higher expectations for sales, capital investment and employment.

A total of 202 NAM member companies responded to the survey, which has been conducted every quarter since 1997. Participating companies were asked to quantify their 12-month expectations on sales, prices, capital investment, inventories, employment and wages.[[In-content Ad]]