Large, U.S.-based industrial manufacturers report renewed optimism about the U.S. and world economies over the next 12 months, despite continued concern about high energy prices, according to a recent Pricewaterhouse-Coopers survey. These companies also expect solid revenue growth, a higher level of new investments, and an upturn in hiring and mergers and acquisitions.

Seventy-six percent of the survey respondents are optimistic about the domestic economy's prospects over the next 12 months, up from a low of 45 percent in the third quarter of 2005, and 54 percent in that year's second quarter. Twenty-two percent of the executives are uncertain about the economy, and 2 percent are pessimistic.

Executives at 62 large U.S manufacturing companies were interviewed for the report.

In terms of the world economy, 71 percent of those surveyed said they are optimistic. This is up from 54 percent in the third quarter of 2005, and 66 percent a year ago.

According to the report, this barometer shows that industrial manufacturers have recast their growth forecasts. They expect revenue gains averaging 7.7 percent over the next 12 months, which is consistent with the 7.8 percent estimated in the prior quarter and a year ago.

"These findings suggest that industrial manufacturers are returning to a more positive business outlook following a debilitating prior quarter that saw two hurricane disasters, business interruptions, and continuation of shockingly high energy prices," said Jorge Milo, leader of PricewaterhouseCoopers' U.S. industrial manufacturing practice. "Today, these leaders are holding steady to their growth targets and taking a brighter view of business conditions at home and abroad."

The survey also shows that while energy costs continue to be a concern for the sector, they are not as significant as they were last quarter.

Sixty-five percent of respondents surveyed in the fourth quarter of 2005 consider escalating energy prices a potential roadblock to their company's growth over the next 12 months. The percentage is significant, but is down from 80 percent in the prior quarter.

For more on the PricewaterhouseCoopers report, visit www.inddist.com/price.