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Texas Manufacturing Outlook Survey Continues to Deteriorate
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Texas manufacturing activity continued to decline in October. Most indicators of current production and general business conditions remained weak. Nearly all indexes for future activity dipped considerably, and several manufacturers noted that the credit crisis had dampened their outlook. Indexes for production, capacity utilization, volume of shipments, volume of new orders and growth rate of orders remained negative due to continued sluggish demand.
Labor market conditions weakened. The employment index continued to slide. The average workweek index improved slightly in October, although twice as many manufacturers reported declines in hours worked than cited increases.
Wage and price pressures, eased noticeably this month. Indexes for raw material prices and finished goods prices recorded their lowest readings since the survey’s inception in 2004. The wage and benefits index fell as a larger share of respondents reported decreases in compensation than last month. Inflation expectations were subdued, with more than 76 percent of respondents saying they expected stable or lower raw materials and finished goods prices six months from now.
Posted: October 27, 2008 Monday 11:36 AM