NEW YORK — Recession fears led to a further decline in optimism among consumer products senior executives in the fourth quarter of 2007, according to PricewaterhouseCoopers.
Optimism in the U.S. economy dropped to 22 percent, down 50 points from the year before.
“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. “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.”
Despite economic concerns, 43 percent of executives are planning major new capital investments over the next year, compared to 37 percent last quarter.
Executives are increasing the mean investment of capital, planning 7.2 percent of total sales, versus 4.2 percent planned last quarter.
Forty-eight percent of executives report confidence in the global economy.
“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. “Executives hope that the buoyancy of the international markets will bump up their trade overall.”
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