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Business/Economy

Texas manufacturers report growth despite supply chain disruptions

Federal Reserve Bank of Dallas.
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Federal Reserve Bank of Dallas.

The Federal Reserve Bank of Dallas reports Texas factory activity continued to pick up speed in November, but manufacturers expect supply chain disruptions to persist well into 2022.

The Texas manufacturing sector continued picking up speed this month compared to October, according to the manufacturing survey the Federal Reserve Bank of Dallas released Monday. Its monthly poll of company executives found production, new orders and shipments all increased in November from levels that have already been well-above average over the past few months.

“And this is despite widespread supply chain disruptions and a lot of difficulty finding workers,” said Dallas Fed senior business economist Emily Kerr. “So far they’ve been able to continue to power through and have been in expansionary and recovery territory for quite a while.”

Nearly 93% of the survey respondents, who answered special questions related to the pandemic, reported supply chain disruptions or delays. The survey also showed growing pessimism among manufacturers about when the shortages of raw materials will end.

“It’s almost split between about two-thirds saying they expect more than six months before their supply chains return to normal; and then just over a third saying within six months,” Kerr said.

In contrast, Kerr said expectations regarding future manufacturing activity were generally more positive this month.

“I think right now it’s sort of a mixed bag with some manufacturers still working to recover where they were pre-pandemic, while others are continuing to grow beyond that,” Kerr said.