Forecasted 1-Year And 5-Year Average 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 October 2021 BIE Survey dated October 13, 2021 (involving 176 firms responding):

  • Inflation expectations: Firms’ year-ahead inflation expectations remain unchanged at 3.1 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 3.5 percent, on average.
  • Quarterly question: Firms’ sales gap (percentage below “normal” unit sales levels) decreased slightly to 0.2 percent above normal, nonetheless, they remain at historically high levels.
  • Special question: Firms were asked for their inflation forecast over calendar year 2022 and the next five years. They were then asked how useful monetary policymaker inflation forecasts are when making their pricing decisions. A breakdown of the results can be found in the special question section below.

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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.

Forecasted Inflation And Responses To Supply Chain Disruption

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 September 2021 BIE Survey dated September 15, 2021 (involving 185 firms responding):

  • Inflation expectations: Firms’ year-ahead inflation expectations were relatively unchanged at 3.1 percent, on average.
  • Current economic environment: Sales levels “compared to normal” decreased to a neutral level. However, profit margins remain unchanged. Year-over-year unit cost growth is relatively unchanged at 3.2 percent, on average.
  • Quarterly question: Firms’ long-term (per year, over the next five to 10 years) inflation expectations were relatively unchanged at 3.0 percent, on average.
  • Special question: Firms were asked whether they faced supply chain disruptions and what actions, if any, they took to mitigate them. They were then asked how important these actions were to the firm’s continuity. A breakdown of the results can be found in the special question section below.

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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.

Forecasted Inflation And Effects Of Supply Chain Disruption

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 August 2021 BIE Survey dated August 11, 2021 (involving 186 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” remain unchanged. However, profit margins decreased slightly. Year-over-year unit cost growth increased significantly to 3.3 percent, on average.
  • Quarterly question: Approximately one-third of firms expect both labor costs and nonlabor costs to put significant upward influence on prices. About 24 percent of firms expect sales levels to put moderate upward influence on prices over the next 12 months, down from 38 percent previously.
  • Special question: Firms were asked to describe how COVID-19 has disrupted their supply chains and business operations. They then indicated the severity and expected length of both types of disruption. Additionally, firms provided their level of concern over the COVID-19 Delta variant and when they expect business operations to return to “normal.” A breakdown of the results can be found in the special question section below.

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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.

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.

—–

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.