Tax-exempt prices ended the week on a sour note Friday, buckling in sympathy with Treasuries, which plummeted on economic indicators that showed growing strength in the manufacturing sector.

The fixed-income markets got off to a bad start and never recovered after it was reported that industrial production rose 0.7% in August after increasing only 0.3% in July, and that capacity utilization was up 0.4% in August to 84.7%, the highest level since April 1989. An indication of burgeoning consumer confidence from a University of Michigan report and uncertainty about a U.S. invasion of Haiti also contributed to the downturn, sources said.

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