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Bradley J. Holcomb, chairman of the institute's survey committee, said manufacturers were "cautiously more optimistic about the next few months based on lower raw materials pricing and favorable levels of new orders".
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What about raw materials prices?
The cost of oil and other raw materials priced in dollars is rising.
Reality: Natural resource and materials prices are rising, and they are also volatile.
But he also points to concerns over "rising raw materials prices and reports of bottlenecks in some supply chains".
Many businesses have been able to cut other costs or increase productivity to offset the higher materials prices.
On the other hand, they can't do anything about high raw materials prices driven by demand from China".
Of course, that raises the question of what caused the rise in raw materials prices in the first place.
Resource company investors are concerned that the slowdown in the global economy will weigh on raw materials prices.
However, raw materials prices, i.e. H2 and captured CO2, do not allow such a project to be financially viable.
"You are just not seeing any pass-through at all of higher raw materials prices to the finished prices," he said.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com