Fewer owners and managers of small manufacturing expressed confidence in their business prospects for the next 12 months according to the Small Business Research Board (SBRB). The Manufacturing Industry Small Business Confidence Index (SBCI) declined to 38.33 in the third quarter. It was down nearly two points from the 40.3 that was reported during the second quarter of 2007 according to the poll co-sponsored by International Profit Associates (IPA).
"Manufacturing companies are approaching the next year with tremendous caution based on the results of the poll which showed a sharp drop in confidence about their business prospects.They understand the seriousness of a weakening economy and are more apt than several other of the industries tracked by the SBRB to feel the impact much deeper," said Gregg M. Steinberg, president of International Profit Associates.
The current manufacturing industry SBCI is lower than the SBCI of 43 reported for all U.S. small businesses.The lower rating was a result of the change in revenue predictions which showed that 45% of the companies expect revenues to increase during the next 12 months which is a seven point decline from the previous quarter.
More than 800 small business owners in the U.S. participated in the nationwide poll.