Suppliers More Pessimistic about Auto Prospects

Parts makers were gloomier about the automotive outlook in September than they were in July, according to the Original Equipment Suppliers Assn.

The OESA Automotive Supplier Index fell to 46 last month from 55 in July, continuing its steady decline from this year's peak of 66 in January.

The report says faint optimism about rising North American production and sales is offset by worries about Europe's financial crisis and uncertainty about U.S. budget negotiations and elections in November. One-fifth of the companies polled say they are delaying decisions about capital investment and facilities expansion until after the elections.

Pessimists account for 31% of respondents vs. 16% in July. The proportion of optimists shrank to 23% from 35% two months earlier.

Respondents identify such near-term challenges as skilled-labor shortages, capacity constraints, new program launches and supply chain capabilities.