Forecasted Inflation And Expectations Concerning Price 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 July 2021 BIE Survey dated July 14, 2021 (involving 175 firms responding):

  • Inflation expectations: Firms’ year-ahead inflation expectations decreased significantly to 2.8 percent, on average.
  • Current economic environment: Sales levels “compared to normal” increased slightly. However, profit margins remain unchanged. Year-over-year unit cost growth is relatively unchanged at 2.9 percent, on average.
  • Quarterly question: Firms’ sales gap (percentage below “normal” unit sales levels) increased to 0.5 percent above normal as firms, on average, are now recording historically high sales levels.
  • Special question: We asked firms how much they change the price of their primary good or service during “normal” times. They were then asked to report whether they experienced a price change during the last 12 months and what the percent change was. We followed up by asking about their expected price changes during the next 12 months. 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.

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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.

Expected Inflation And Impacts Of Supply Chain Disruptions

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 June 2021 BIE Survey dated June 16, 2021 (involving 195 firms responding):

  • Inflation expectations: Firms’ year-ahead inflation expectations increased significantly to 3.0 percent, on average.
  • Current economic environment: Sales levels “compared to normal”; increased slightly. However, profit margins remain unchanged. Year-over-year unit cost growth increased significantly to 3.0 percent, on average.
  • Quarterly question: Firms’ long-term (per year, over the next five to 10 years) inflation expectations increased significantly to 3.0 percent, on average.
  • Special question: Firms were asked whether they experienced either supply chain delays or business operation disruptions within the last week. They were then asked to report the intensity of any disruptions and how long they expected them to persist. 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.

Expected Inflation And Impacts Of Labor Cost 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 May 2021 BIE Survey dated May 12, 2021 (involving 187 firms responding):

  • Inflation expectations: Firms’ year-ahead inflation expectations increased significantly to 2.8 percent, on average.
  • Current economic environment: Sales levels are at normal levels while profit margins “compared to normal” remain near average levels. Year-over-year unit cost growth increased significantly to 2.8 percent, on average.
  • Quarterly question: Approximately one quarter of firms expect labor costs to put significant upward influence on prices while one third expect nonlabor costs to do the same. About 40 percent of firms expect sales levels to put moderate upward influence on prices over the next 12 months.
  • Special question: Firms were asked to describe how their pricing and operations strategies would change due to a federal minimum wage increase. 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.

Businesses’ Expected Changes In Unit Costs And 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, 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 2021 BIE Survey dated April 14, 2021 (involving 199 firms responding):

  • Inflation expectations: Firms’ year-ahead inflation expectations are relatively unchanged at 2.5 percent, on average.
  • Current economic environment: Sales levels and profit margins compared to “normal” improved over the month with sales returning to average levels while profits remain near average levels. Year-over-year unit cost growth increased significantly to 2.4 percent, on average.
  • Quarterly question: Firms’ sales gap (percentage below “normal” unit sales levels) decreased significantly to 1.1 percent as firms, on average, are now at “normal” sales levels.
  • Special question: If a firm’s unit cost growth was up significantly, they were asked how long they expected this to last. They were then asked to report whether they experienced a price change over the last 12 months and what the percent change was. This question was followed up by asking about their expected price changes over the next 12 months. 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.

Business Expectations Concerning Short- And Long-Term 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 March 2021 BIE Survey dated March 10, 2021 (involving 196 firms responding):

  • Inflation expectations: Firms’ year-ahead inflation expectations increased significantly to 2.4 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 2.2 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 whether they experienced either supply chain delays or business operation disruptions within the last week. They were then asked to report the intensity of any delays or disruptions. 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.