Businesses’ Unit Cost And Sales Trends

The Federal Reserve Bank of Atlanta publishes a monthly report titled “Business Inflation Expectations” (BIE) that contains statistics from a survey of regional businesses’ views on various factors that impact profitability.  These factors include unit costs, unit cost expectations, sales levels, profit margins, and other factors.

As described on the site:

Approximately 300 panelists receive the survey each month. Panelists represent businesses of various sizes headquartered within the Sixth District, which encompasses Alabama, Florida, Georgia, and sections of Louisiana, Mississippi, and Tennessee. Panelists range from executives of large corporations to owner-operators of small businesses. The industry composition of the panel roughly reflects the makeup of the national economy. Nevertheless, survey responses are weighted by industry shares of national gross domestic product.

An excerpt from the September 2016 BIE Survey dated September 23, 2016 (involving 229 firms responding):

Respondents indicated that, on average, they expect unit costs to rise 1.9 percent over the next 12 months. Inflation uncertainty increased to 2.2 percent. Firms also report that, compared to this time last year, their unit costs are up 1.5 percent. Respondents’ sales levels, compared to what they consider normal conditions, fell slightly to a diffusion index value of -14 compared to -13 in August. Profit margins also fell somewhat, with a diffusion index value of -21.

This month’s “quarterly question” concerned “Percent above/below normal sales levels.”

This month’s “special question” regarded “Presidential election uncertainty.”

The report also includes a variety of charts and tables depicting respondents’ answers.

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