Leading white spaces are being added

[Astounding]

Given the results you describe (and given that you have tried to simplify the problem in order to share it) ...

Is it possible that the variable NAMES might contain a leading tab character, rather than a leading blank?  I could imagine it's possible that a tab character within the program editor might be treated differently than a tab character brought in with %include.

[dwsmith]

@Astounding is there a way to strip tabs if this is the case?

[Reeza]

COMPRESS function with the s modifier

http://support.sas.com/documentation/cdl/en/lrdict/64316/HTML/default/viewer.htm#a000212246.htm

compress(name, , 'st')

[Ksharp]

That is really weird .

1) Try %left()

	data serno_%left(&prod_grp);
		set serials2_%left(&prod_grp);
		eqp_id = trim(ser_no) || "CAT";
	run;

2) Put prefix in when that macro variable is creating.

%do i = 1 %to &cnt;
	data _null_;
		set prod (obs = &i firstobs = &i);
		call symputx ('prod_grp1', cats('serials2_',names));
                call symputx ('prod_grp2', cats('serno_',names));
	run;
	%put "&prod_grp";
	data &prod_grp2 ;
		set &prod_grp1 ;
		eqp_id = trim(ser_no) || "CAT";
	run;
%end;

[dwsmith]

@Ksharp

I tried your suggestions:

SYMBOLGEN:  Macro variable NAME resolves to 	mttt
22: LINE and COLUMN cannot be determined.
NOTE 242-205: NOSPOOL is on. Rerunning with OPTION SPOOL might allow recovery of the LINE and COLUMN
              where the error has occurred.
ERROR 22-7: Invalid option name DBCREATE_TABLE_OPTS.
SYMBOLGEN:  Macro variable NAME resolves to 	mttt
ERROR: File WORK.SERNO_.DATA does not exist.

Number 2:

SYMBOLGEN:  Macro variable PROD_GRP1 resolves to serials2_mttt
"serials2_mttt"
SYMBOLGEN:  Macro variable PROD_GRP2 resolves to serno_mttt
"serno_mttt"
SYMBOLGEN:  Macro variable PROD_GRP2 resolves to serno_mttt
SYMBOLGEN:  Macro variable PROD_GRP1 resolves to serials2_mttt
ERROR: File WORK.SERIALS2_.DATA does not exist.
ERROR: File WORK.MTTT.DATA does not exist.

[Reeza]

@dwsmith Do you have this resolved or still having issues. 

If you are, please post your full code and log. 

[dwsmith]

@Reeza still have this issue.

[Ksharp]

Number2 looks good , It render the right value. But LOG said they don't exist there. 

Check the WORK library ,and make sure they are being there .

[dwsmith]

@Ksharp the datasets are there and nonempty. I can run this program without the %include call 100% no issues.