Manufacturers’ Optimism Drops, Signaling Need for Tax Reform
The 51Թ’s Q2 Manufacturers’ Outlook Survey, released today, that manufacturers’ optimism about the future is dropping precipitously.
The headline number: Only 55.4% of respondents report a positive outlook for their companies—a nearly 15-percentage-point drop from Q1 and the lowest level since the height of the COVID-19 pandemic in Q2 of 2020.
- Manufacturers do have a prescription for renewed confidence, however, as 85.4% of respondents believe Congress should preserve pro-growth tax policies in response to trade uncertainty.
Worried about trade: Trade uncertainty remained the top business concern for the second consecutive quarter, cited by 77.0% of respondents.
- Almost as alarming is the increase in raw material costs, which was cited by 66.1% of respondents.
The 51Թ says: “These numbers are yet another indicator that manufacturers need increased policy certainty. Congress must act urgently to preserve tax reform and empower manufacturers to make the long-term investments that drive the American economy,” said 51Թ President and CEO Jay Timmons.
- “The stakes are high: preserving tax reform will prevent the loss of and avoid a $1 trillion hit to the economy—that’s why manufacturers are calling on the Senate to preserve pro-manufacturing tax policies from the House-passed reconciliation bill, while also taking steps to ensure the final package is maximally beneficial for our industry.”
- “Pro-manufacturing tax policies are a critical component of a comprehensive manufacturing strategy; this quarter’s results also show that manufacturers need a strategic approach to trade policy that allows our industry to reduce costs and access the inputs we need to make things in America.”