Firms’ Expectations Concerning Inflation And Impact Of COVID-19

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.

Two excerpts from the September 2020 BIE Survey dated September 16, 2020 (involving 209 firms responding):

Inflation expectations: Firms’ year-ahead inflation expectations have remained relatively unchanged at 1.6 percent, on average.

also:

Quarterly question: Firms’ long-term (per year, over the next five to 10 years) inflation expectations went relatively unchanged at 2.4 percent, on average.

The survey also asked firms about the impact and challenges presented by the COVID-19 outbreak.

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

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RevSD, LLC offers the above commentary for informational purposes only, and does not necessarily agree with all (or any) of the views expressed by these outside parties.

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ProfitabilityIssues.com is published by RevSD, LLC.  RevSD, LLC is a management consulting firm and strategic advisory that focuses on the analysis of current and future business conditions, and given these conditions, offers corporations and businesses advice, strategies, and actionable methods on how to optimally increase revenues and profitability.

Expectations Concerning Inflation And Employee Wages

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 August 2020 BIE Survey dated August 12, 2020 (involving 212 firms responding):

Inflation expectations: Firms’ year-ahead inflation expectations have remained the same at 1.7 percent, on average.

The survey also displays the wage increases and decreases by employee skill level since the COVID-19 outbreak in March. The expectations through 2020 is also surveyed.

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

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RevSD, LLC offers the above commentary for informational purposes only, and does not necessarily agree with all (or any) of the views expressed by these outside parties.

—–

ProfitabilityIssues.com is published by RevSD, LLC.  RevSD, LLC is a management consulting firm and strategic advisory that focuses on the analysis of current and future business conditions, and given these conditions, offers corporations and businesses advice, strategies, and actionable methods on how to optimally increase revenues and profitability.

COVID-19 Impact On Firms’ Operations And Financial Results

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 July 2020 BIE Survey dated July 15, 2020 (involving 224 firms responding):

  • Inflation expectations: Firms’ year-ahead inflation expectations have remained the same at 1.7 percent, on average.
  • Current economic environment: Sales levels and profit margins “compared to normal” continued to improve over the month, though they remain at historically low levels. Year-over-year unit cost growth decreased slightly to 1.1 percent, on average.
  • Quarterly question: Firms’ sales gap (percentage below “normal” unit sales levels) improved somewhat to 14.3 percent below normal, on average, compared to the last measure of 31.6 percent below normal taken in April.
  • Special question: Firms provided an estimate of the number of months it will take until business returns to “normal,” and the number of months they can continue to operate without accessing additional sources of funding. They also provided a rating of the extent to which the COVID-19 outbreak has impacted their sales activity and operations.

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

_____

RevSD, LLC offers the above commentary for informational purposes only, and does not necessarily agree with all (or any) of the views expressed by these outside parties.

—–

ProfitabilityIssues.com is published by RevSD, LLC.  RevSD, LLC is a management consulting firm and strategic advisory that focuses on the analysis of current and future business conditions, and given these conditions, offers corporations and businesses advice, strategies, and actionable methods on how to optimally increase revenues and profitability.

Financial Assistance And Inflation Responses By Firms

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 June 2020 BIE Survey dated June 10, 2020 (involving 206 firms responding):

  • Inflation expectations: Firms’ year-ahead inflation expectations increased somewhat to 1.7 percent, on average.
  • Current economic environment: Sales levels and profit margins “compared to normal” improved over the month but remain at historically low levels. Year-over-year unit cost growth remains at 1.2 percent, on average.
  • Quarterly question: Firms’ long-term (per year, over the next five to 10 years) inflation expectations went relatively unchanged at 2.5 percent, on average.
  • Special question: Firms indicated whether they requested federal financial assistance. They then provided a breakdown of which programs they applied to, which programs they received funds from, and how much they expect to have to repay. A breakdown of the results can be found in the special question section below.

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

_____

RevSD, LLC offers the above commentary for informational purposes only, and does not necessarily agree with all (or any) of the views expressed by these outside parties.

—–

ProfitabilityIssues.com is published by RevSD, LLC.  RevSD, LLC is a management consulting firm and strategic advisory that focuses on the analysis of current and future business conditions, and given these conditions, offers corporations and businesses advice, strategies, and actionable methods on how to optimally increase revenues and profitability.

Firms’ Responses On Inflation Expectations And COVID-19 Impact

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 May 2020 BIE Survey dated May 13, 2020 (involving 223 firms responding):

  • Inflation expectations: Firms’ year-ahead inflation expectations went virtually unchanged at 1.5 percent, on average.
  • Current economic environment: Sales levels and profit margins “compared to normal” remain at historically low levels. Year-over-year unit cost growth remains at 1.2 percent, on average.
  • Quarterly question: The majority of firms expect labor costs and non-labor costs to put moderate upward influence on prices over the next twelve months.
  • Special question: Firms indicated the degree of disruption they’ve experienced with regard to their sales activity, suppliers/supply chains, and ability to maintain adequate staffing levels as a result of the outbreak of COVID-19. They also provided their expectations of when these elements of their business might be free of disruption. A breakdown of the results can be found in the special question section below.

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

_____

RevSD, LLC offers the above commentary for informational purposes only, and does not necessarily agree with all (or any) of the views expressed by these outside parties.

—–

ProfitabilityIssues.com is published by RevSD, LLC.  RevSD, LLC is a management consulting firm and strategic advisory that focuses on the analysis of current and future business conditions, and given these conditions, offers corporations and businesses advice, strategies, and actionable methods on how to optimally increase revenues and profitability.