Manufacturers cautiously optimistic, survey says

Despite feeling constrained by the lack of customer demand, U.S. manufacturing executives are optimistic about the prospects for their companies and the economy, said a recent survey by accounting firm Baker Tilly.

The survey found that over half of manufacturing executives - 57 percent - are optimistic about the economic outlook for the next six months, while 70 percent are planning to keep employment levels steady.

In contrast to the general economic outlook, manufacturers were slightly more worried about their own working capital - 47 percent are optimistic about the manufacturing sector's financial prospects, 10 percent less than that of the general economy.

Baker Tilly attributes this discrepancy to the pinch caused by lack of customer demand, cited by 45 percent of respondents as the greatest challenge to the growth of their company, followed by difficulty accessing business lines of credit and other financing options.

"Many manufacturers see reasons for cautious optimism but there is a pervasive 'wait and see' attitude regarding demand," said Brad DeNoyer, partner and manufacturing industry lead at Baker Tilly.

Although manufacturing sales fell 0.1 percent in May according to the U.S. Census Bureau, the Federal Reserve Bank of New York announced that the state's manufacturing sales were at the highest level since the beginning of the recession.