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Survey: U.S. Execs Optimistic About U.S. Economy

Compiled By Traci Purdum Senior executives are upbeat about prospects for the national economy, with nearly two-thirds saying they are optimistic about prospects for the next 12 months, according to PricewaterhouseCoopers' Management Barometer. Additionally, 42% said they were optimistic about the world economy, up from 28% in the previous quarter. However, executives remained cautious in their 12-month forecasts for revenue growth, new investments and new hiring, and many cited concerns about weak market demand and their company's profitability. "For the first time in four consecutive quarters, more than half of executives have a positive outlook toward business in the upcoming 12 months," says Frank Brown, PricewaterhouseCoopers global leader for Assurance and Business Advisory Services. "Companies may be ready to break out of the wait-and-see pattern and begin building inventories, placing orders and making new investments. That's good news. The big question is how soon they will make a commitment." Participants in the Management Barometer also stated five main barriers to company growth over the next 12 months:

  • Weak market demand, noted by 53%
  • Decreasing profitability, 37%
  • Legislative and regulatory pressures, 31%
  • Capital constraints, 25%
  • Competition from foreign markets, 24%
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