The poll of owners and managers of manufacturing companies indicated that 48% are expecting the economy to worsen over the next 12 months. 41% of the same group said they expect revenues to increase during the coming 12 months versus 54% who predicted revenue increases during the previous quarter.
In regard to the third major indicator of confidence, hiring expectations, 44% of the respondents said they expect hiring to remain as it did in the past year throughout the course of the next 12 months.
The second quarter manufacturing industry confidence index of 32 is consistent with the 30 reported for all U.S. small businesses.
Meanwhile, the quarterly report said 58% of the businesses have reported inflationary pressures. For those businesses adjusting to inflationary pressures, 64% have raised prices, 33% have increased shipping and handling costs and 26% have reduced other operating costs. Survey participants reported renegotiating customer pricing agreements as the fourth-mentioned possibility for offsetting costs.
More than 1,000 small business owners participated in the nationwide poll. The universe of participants is developed from among small businesses across the United States. The SBRB study is a voluntary survey conducted quarterly.
