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.

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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’ 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.

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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 Expectations And Demand Characteristics

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 2023 BIE Survey dated December 13, 2023 (involving 234 firms responding):

  • Inflation expectations: Firms’ year-ahead inflation expectations remained relatively unchanged at 2.4 percent, on average.
  • Current economic environment: Sales levels “compared to normal” remained relatively unchanged over the month. However, profit margins “compared to normal” decreased over the month. Year-over-year unit cost growth decreased significantly to 2.9 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 level of demand. They were also asked about the impact of demand level on their revenue. 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 Inflation Expectations And Wage Change Characteristics

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 November 2023 BIE Survey dated November 15, 2023 (involving 224 firms responding):

  • Inflation expectations: Firms’ year-ahead inflation expectations remained relatively unchanged at 2.5 percent, on average.
  • Current economic environment: Firms’ sales levels and profit margins “compared to normal” decreased. Year-over-year unit cost growth remained unchanged at 3.2 percent, on average.
  • Quarterly question: Firms were asked about factors at work on price changes. Approximately 76 percent of firms expect both labor and nonlabor costs to place upward influence on prices. About 41 percent of firms expect sales levels to exert little or no influence on prices over the next 12 months. Approximately 49 percent of firms expect margin adjustment to have little or no influence on prices over the next 12 months.
  • Special question: Firms were asked about how wages for low- and high-skilled jobs changed in the past 12 months and how they might change in the next 12 months. They were also asked about supply chain conditions and hiring conditions. A breakdown of the results can be found in the special question section.

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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.

Business Inflation Expectations And Price Change Characteristics

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 October 2023 BIE Survey dated October 11, 2023 (involving 209 firms responding):

  • Inflation expectations: Firms’ year-ahead inflation expectations remain relatively unchanged at 2.4 percent, on average.
  • Current economic environment: Sales levels and profit margins “compared to normal” decreased. Year-over-year unit cost growth remained relatively unchanged at 3.2 percent, on average.
  • Quarterly question: Firms’ sales levels (compared to “normal” unit sales levels) decreased to 5.1 percent below normal.
  • Special question: Firms were asked about the frequency at which they change their price. They were also asked about the net effect of price changes. 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.