The latest IHS Markit Business Outlook survey signals that U.S. private sector firms are less optimistic toward the outlook for business activity over the coming 12 months than in June.
According to economists, the net balance of firms expecting a rise in output has dropped from +16% in June to +10% in October. That’s the lowest for three years. The net balance of firms forecasting growth is also below the global (+14%) and developed market (+12%) averages.
Both manufacturing and service sector firms expressed a lower level of positive sentiment toward future output than earlier in the year.
Confidence is generally linked to new export opportunities, with some companies planning on expanding their reach following ongoing trade tensions. At the same time, some private sector firms are suggesting that they have attracted new clients as more customers switch to domestically produced goods.
Companies are also predicting that greater marketing activity and the release of new products and services will boost sales over the next 12 months.
About the Author
Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]