Firms’ Business Conditions And Expectations Concerning Inflation

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 2021 BIE Survey dated January 13, 2021 (involving 209 firms responding):

  • Inflation expectations: Firms’ year-ahead inflation expectations have increased significantly to 2.2 percent from 2.0 percent, on average.
  • Current economic environment: Sales levels and profit margins “compared to normal” decreased over the month; however, they remain near average levels. Year-over-year unit cost growth remains relatively unchanged at 1.8 percent, on average.
  • Quarterly question: Firms’ sales gap (percentage below “normal” unit sales levels) decreased slightly to 6 percent as firms, on average, are now closer to “normal” sales levels.
  • Special question: Firms were asked if the COVID-19 pandemic or its aftermath led to any changes in their pricing strategy.

The responses to the last question will be compiled and released at a later time.

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’ Expectations Concerning Inflation And Pricing Changes

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 December 2020 BIE Survey dated December 16, 2020 (involving 204 firms responding):

  • Inflation expectations: Firms’ year-ahead inflation expectations have remained relatively unchanged at 2.0 percent, on average.
  • Current economic environment: Sales levels and profit margins “compared to normal” improved over the month and are near average levels. Year-over-year unit cost growth increased significantly to 1.7 percent, on average.
  • Quarterly question: Firms’ long-term (per year, over the next five to 10 years) inflation expectations increased significantly to 2.7 percent, on average.
  • Special question: Firms assessed how the price of their major product/product line or service changed over the last year. They then indicated how they expect the price to change over the next year and what their biggest concerns are for 2021. 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’ Expectations Concerning Inflation And Pressures On Prices

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 November 2020 BIE Survey dated November 12, 2020 (involving 193 firms responding):

Inflation expectations: Firms’ year-ahead inflation expectations are relatively unchanged at 1.9 percent, on average.

also:

Quarterly question: The majority of firms expect labor costs and nonlabor costs to put moderate upward influence on prices, while about one fifth of firms expect sales levels to put moderate downward influence on prices over the next 12 months.

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.

Various Aspects Of Firms’ Expectations Concerning Year-Ahead Inflation

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 October 2020 BIE Survey dated October 14, 2020 (involving 211 firms responding):

Inflation expectations: Firms’ year-ahead inflation expectations have increased significantly at 1.8 percent, on average.

also:

Special question: Firms were asked to provide their lowest and highest rates of potential inflation for 2021. They also indicated the level which monetary policymaker forecasts influence their 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’ 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.

_____

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.