© Reuters. U.S. Inflation Pressures Grow Further in Dallas Fed Survey
(Bloomberg) — Texas manufacturing activity continued to expand in November. So did inflationary pressures.
A measure of raw materials prices jumped to a record high in November while a gauge of wages and benefits neared a series high, according to a survey of 95 Texas manufacturers released Monday by the Federal Reserve Bank of Dallas. The overall factory activity measure eased slightly, though it remained elevated as indexes of production and new orders rose.
Supply chain challenges — a key driver of price gains in recent months — also don’t appear to be going away any time soon. Fewer than one in 10 respondents expect their firm’s supply chain to return to normal within the next three months. A quarter expect normalization to take longer than a year.
On wages, however, firms have taken a wide array of approaches to attracting workers. Roughly six in 10 respondents raised wages by at least 4% for low- and mid-skill positions, according to special questions. Some 56% of firms offered similar pay increases to high-skill workers.
At the same time, roughly a quarter of the Texas firms said they haven’t raised wages at all over the past year for low-skill, mid-skill or high-skill positions.
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