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The Federal Reserve Bank of Dallas released its monthly Texas manufacturing outlook this week, which assesses the sector based on a survey of manufacturers, with many of them sounding warnings in their feedback.
The report said the data showed weakness in the state's manufacturing sector, but included comments from respondents that were redacted for publication, with several sounding alarm bells about the state of the economy.
One food manufacturer warned the Dallas Fed that there were signs that consumers were struggling.
A variety of sausages are displayed in the meat section of a Fred Meyer grocery store in Palmer, Alaska. A food manufacturer warned the Dallas Fed that consumers are buying more sausage for dinner, which is usually a sign of “economic weakness.” (Michael Silk/UCG/Universal Images Group via Getty Images/Getty Images)
“The dinner sausage category has seen modest growth as the economy weakens,” the commentary reads. “The category tends to grow in weaker economies because sausages offer a good alternative to more expensive proteins and can 'stretch' consumers' food dollars.”
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“Agriculture is suffering. The failure of the Farm Bill, poor weather, falling raw material prices and rising input costs have put enormous pressure on our industry,” wrote another food manufacturer.
A third simply commented: “We're preparing for a recession.”
Machinery manufacturers also released dire reports, with one saying “the economic slowdown has taken hold and business activity is at a very low level,” while another commented: “The situation is just bad everywhere. There are no skilled workers.”
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Many producers expressed concern about the upcoming presidential election between former President Donald Trump and Vice President Kamala Harris.
“Can't wait for November to come!” one machinery manufacturer wrote. “Our competitors and customer bases are stagnant. We're sitting around doing nothing until a winner is announced, when we all know the world will go on regardless.”
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Another said: “The biggest uncertainty is about the election. Many customers are taking a 'wait and see' attitude. Every small business owner I've spoken to is very concerned about high taxes, anti-growth, anti-small business policies.” [we think] The one who always comes [Kamala] President Harris.”
Vice President Kamala Harris addresses members of the American Federation of Teachers at the George R. Brown Convention Center, Thursday, July 25, 2024, in Houston. (Elizabeth Conley/Houston Chronicle via Getty Images/Getty Images)
“The United States appears increasingly to be losing its geopolitical strength, and this vacuum is fueling war and violence, posing greater risks to international trade, and reducing opportunities for U.S. businesses,” another manufacturer wrote to the Dallas Fed.
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“Anti-business, tax-and-spend rhetoric will not help long-term investment and will further reduce the competitiveness of U.S. companies, especially vis-à-vis Chinese government-backed industries and companies,” the respondents added.
FOX Business' Edward Lawrence contributed to this report.
