The latest Manufacturing Barometer survey from Price Waterhouse Coopers USA has found that business optimism increased in the third quarter, with US manufacturing companies forecasting an average revenue-growth rate of 5.6% in the last quarter of this year, up from a figure of 4.2% a year ago. However, only 57% of manufacturers expressed optimism about the coming 12 months, compared to 65% in the previous Barometer and 60% a year ago.

At the same time, optimism about the world economy dropped to 30%, down from 38% in the previous survey. The survey also found that 36% expect to invest in new machinery over the next 12 months, down from 52% in the previous quarter. Plans for spending on R&D dropped to 36%, down from 45% in the previous quarter of 2014.

Bobby Bono, head of PWC’s US industrial manufacturing division, said: “The projected revenue-growth rate among industrial manufacturing companies rose during the third quarter, indicating increased levels of confidence in company fundamentals and competitive positioning.

“The improved outlook for company performance ran counter to a decline in optimism regarding the direction of the economic environment — particularly on the international stage. At the same time, we saw a notable ‘up-tick’ in caution regarding the potential impacts of legislative, regulatory and taxation policies.

“This tells us that management teams believe they are making the right decisions to grow, but remain leery of external factors beyond their control, resulting in some abatement in the level of near-term spending and investment plans.

“As the year progresses, we have been seeing an increase of geo-political concerns across the world, which is adding complexity to management decision-making. However, balance sheets remain strong across the sector, boding well for future investment activity as the macro-environment becomes clearer.”