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A measure of wages and benefits at Texas manufacturers rose in January to the highest on record, consistent with recent data showing a tight labor market and elevated inflationary pressures across the national economy.
The Federal Reserve Bank of Dallas index of wages and benefits climbed to 49.6, the highest in data back to 2004, from 46.5 a month earlier, data released Monday showed. Factories in the Lone Star state also expect to pay more for raw materials in the next six months. The Dallas Fed's outlook for prices paid jumped to 59.6, the second-highest since 2011.
The figures mirror those reported recently by other regional Fed banks. The Philadelphia Fed's index of expected input costs six months from now rose to the highest since August 1988. A similar New York Fed gauge as well as a measure of the outlook for prices received both rose to the highest in data dating back to 2001.
One Dallas Fed survey respondent in printing and related product manufacturing said the industry was “in chaos” because bookings remain robust while payrolls are lean.
“Orders are very strong, reflecting panic buying as customers are afraid they won't be able to get their orders on a timely basis,” the commenter said. “We can't hire enough people to staff our equipment. People are leaving for more money or threatening to leave, which requires us to respond with significant wage increases.”
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