U.S. economic outlook continues to stabilize, uncertainty about the global economy lingers among U.S. industrial manufacturers

PricewaterhouseCoopers - Manufacturing Barometer reports that optimism about the U.S. economy is down slightly from last quarter, but still shows strength with almost half (45 percent) of U.S. industrial manufacturers optimistic about the next 12 months, according to the Q2 2010 report. Only 12 percent of industrial manufacturers are pessimistic about the U.S. economy’s prospects over the next 12 months, while 43 percent are uncertain. Of those marketing abroad, 38 percent are optimistic about the world economy over the next 12 months, down 15 points from last quarter. More respondents are uncertain, at 46 percent, but only 16 percent are pessimistic.

For the second quarter in a row, legislative/regulatory pressures ranked highest among perceived barriers to growth over the next 12 months, with 63 percent of panelists naming it as a concern (down 10 points from last quarter). Taxation policies rose 14 points this quarter, cited by 57 percent. The number concerned about lack of demand dropped 13 points in Q2 2010 but remains a potential barrier according to 50 percent of respondents, followed by the monetary exchange rate, cited by 40 percent of panelists. On the positive side, decreasing profitability dropped 12 points this quarter, with only 35 percent citing it as a possible barrier to growth.