Firms’ Business Results And Ability To Pass Along Cost Increases

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, pricing, 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 2024 BIE Survey dated May 22, 2024 (involving 310 firms responding):

  • Inflation expectations: Firms’ year-ahead inflation expectations remained unchanged at 2.3 percent, on average.
  • Current economic environment: Sales levels and profit margins “compared to normal” decreased over the month. Year-over-year unit cost growth remained relatively unchanged at 2.7 percent, on average.
  • Quarterly question: Over the past 12 months, firms saw prices rise by an average of 4.5 percent, but they project a more moderate increase of approximately 3.4 percent in the next 12 months.
  • Special question: Firms were asked about their ability to pass through cost increases. They were also asked about their current level of demand. A breakdown of the results can be found in the special questions section.

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.

Firms’ Cost Forecasts And Labor Situation

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, pricing, 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 April 2024 BIE Survey dated April 17, 2024 (involving 297 firms responding):

  • Inflation expectations: Firms’ year-ahead inflation expectations remained relatively unchanged at 2.3 percent, on average.
  • Current economic environment: Sales levels and profit margins “compared to normal” remained relatively unchanged. Year-over-year unit cost growth significantly decreased to 2.6 percent, on average.
  • Quarterly question: Firms’ sales levels (compared to “normal” unit sales levels) increased to approximately 4.9 percent below normal.
  • Special question: Firms were asked about their 12-month realized rate of wage change and their 12-months-ahead expected rate of wage change for both low-skilled jobs and high-skilled jobs. They were also asked about the share of employees using A.I. tools, and the impact of those tools on their productivity. A breakdown of the results can be found in the special questions section.

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.

Firms’ Inflation Forecasts And Business Expectations

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, pricing, 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 March 2024 BIE Survey dated March 20, 2024 (involving 307 firms responding):

  • Inflation expectations: Firms’ year-ahead inflation expectations remained relatively unchanged at 2.4 percent, on average.
  • Current economic environment: Sales levels and profit margins “compared to normal” remained relatively unchanged over the month. However, year-over-year unit cost growth increased significantly to 2.8 percent, on average.
  • Quarterly question: Firms’ long-term (per year, over the next five to 10 years) inflation expectations remain relatively unchanged at 2.8 percent, on average.
  • Special question: Firms were asked about their expectations for the prime rate, sales revenue, number of employees, and capital expenditure expectations for year-end 2024. They were also asked about their expectations regarding sales revenue, number of employees, and capital expenditures if the borrowing rate is either 2 percent higher or 2 percent lower than their original expectations. 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’ Inflation Expectations And Factors In Pricing Decisions

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, pricing, 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 February 2024 BIE Survey dated February 21, 2024 (involving 295 firms responding):

  • Inflation expectations: Firms’ year-ahead inflation expectations remained relatively unchanged at 2.3 percent, on average.
  • Current economic environment: Sales levels and profit margins “compared to normal” increased over the month. Year-over-year unit cost growth remained relatively unchanged at 2.6 percent, on average.
  • Quarterly question: Over the past 12 months, firms saw prices rise by an average of 6.0 percent, but they project a more moderate increase of approximately 3.8 percent in the next 12 months.
  • Special question: Firms were asked about the factors they follow when setting prices. They were also asked about the impact of the Consumer Price Index on their business decisions. 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’ Inflation Expectations And Current Business 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, pricing, 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 January 2024 BIE Survey dated January 17, 2024 (involving 270 firms responding):

  • Inflation expectations: Firms’ year-ahead inflation expectations significantly decreased to 2.2 percent, on average.
  • Current economic environment: Sales levels and profit margins “compared to normal” increased. Year-over-year unit cost growth significantly decreased to 2.7 percent, on average.
  • Quarterly question: Firms’ sales levels (compared to “normal” unit sales levels) decreased to 5.3 percent below normal.
  • Special question: Firms were asked about their most pressing concerns looking ahead into 2024. They were also asked about their turnover rate. A breakdown of the results can be found in the special questions 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.