The Dallas Fed’s manufacturing index fell to 7.1.
That was well short of the consensus forecast for 12.8, as well as July’s 12.7 mark. However, a positive reading still signals expansion.
The Dallas Fed said manufacturing companies had been reducing staffing and raising prices as a result of the Affordable Care Act.
“The Affordable Care Act is such a huge cost increase we must pass it on to our customers or go broke,” one metals manufacturing exec said in the survey. “The projected cost increase is more money than we made last year. This increase will put us at an even bigger cost disadvantage versus imports. We will lose business to imports and plan to reduce our workforce accordingly.”
Here’s what the survey now looks like:
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