Confidence Among U.S. Consumer Products Companies Declines
Feb 28, 2008
Source: The Merchandise Group
According to PricewaterhouseCoopers' Consumer Products Barometer, 38 percent of consumer products senior executives are pessimistic about the domestic economy, compared to 22 percent who are optimistic. The survey, which is taken quarterly of top executives in 58 large, consumer products businesses, found that fear of recession has kept optimism low, but international sales are a strong contributor to total revenue of many consumer products companies. The survey also found that hiring plans are on hold, with only 22 percent of executives planning to add new workers in the next year. But, only 10 percent of companies plan to reduce their workforce.
"The consumer products sector is being affected by the downturn in the U.S. market," said John Maxwell, leader of PricewaterhouseCoopers' retail and consumer industry practice, in a statement. "However, executives are preparing to weather the economic storm with continued spending support for operations necessary to remain competitive in the marketplace, as well as for capital expenditures to drive the business long-term."
"International markets offer optimism for consumer products companies in a down domestic market," said Lisa Feigen Dugal, PricewaterhouseCoopers' North American retail and consumer industry advisory leader, in a statement. "Executives hope that the buoyancy of the international markets will bump up their sales overall."
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