Firms’ Responses On Inflation Expectations And COVID-19 Impact

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.

An excerpt from the May 2020 BIE Survey dated May 13, 2020 (involving 223 firms responding):

  • Inflation expectations: Firms’ year-ahead inflation expectations went virtually unchanged at 1.5 percent, on average.
  • Current economic environment: Sales levels and profit margins “compared to normal” remain at historically low levels. Year-over-year unit cost growth remains at 1.2 percent, on average.
  • Quarterly question: The majority of firms expect labor costs and non-labor costs to put moderate upward influence on prices over the next twelve months.
  • Special question: Firms indicated the degree of disruption they’ve experienced with regard to their sales activity, suppliers/supply chains, and ability to maintain adequate staffing levels as a result of the outbreak of COVID-19. They also provided their expectations of when these elements of their business might be free of disruption. 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’ Responses On How Sales Are Impacted By Coronavirus

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.

An excerpt from the April 2020 BIE Survey dated April 15, 2020 (involving 242 firms responding):

  • Inflation expectations: Firms’ year-ahead inflation expectations declined to 1.4 percent, on average.
  • Current economic environment: Sales levels “compared to normal” declined dramatically over the month. Profit margins experienced a similar decline. Year-over-year unit cost growth fell to 1.2 percent, on average.
  • Quarterly question: Firms’ sales gap (percentage below “normal” sales levels) widened substantially to 31.6 percent below normal from 2.5 percent below normal in January, the last measure.
  • Special question: Firms indicated the extent to which the recent spread of coronavirus (COVID-19) had affected their sales activity and operations. In addition, they provided an estimate of when they expect to return to normal operations and how long they can continue to operate without accessing additional sources of funding. They also indicated how they anticipate the price of the product/product line or service responsible for the largest share of their revenue is likely to change over the next six 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.

Firms’ Responses Regarding Inflation Expectations And Current Sales

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.

An excerpt from the March 2020 BIE Survey dated March 11, 2020 (involving 228 firms responding):

  • Inflation expectations: Firms’ year-ahead inflation expectations increased to 1.9 percent, on average.
  • Current economic environment: Sales levels “compared to normal” declined significantly over the month. Profit margins also declined but only slightly. Year-over-year unit cost growth went virtually unchanged at 1.6 percent, on average.
  • Quarterly question: Firms’ long-term inflation expectations (per year, over the next five to ten years) were 2.6 percent, unchanged from the last reading in December 2019.
  • Special question: Firms indicated whether the recent spread of coronavirus (COVID-19) had affected various areas of their business. 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 Annual Employee Merit 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, 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 2020 BIE Survey dated February 12, 2020 (involving 218 firms responding):

  • Inflation expectations: Firms’ year-ahead inflation expectations declined to 1.7 percent, on average.

The “Special question” concerned whether firms provide annual merit increases to their full-time employees and, if so, various aspects of these increases.

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’ Inflation Expectations And Changes In Employees 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, 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 2020 BIE Survey dated January 15, 2020 (involving 234 firms responding):

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

The “Special question” concerned two aspects: the percentage change over the last three months in the number of employees; and the percentage price change over the last three months of the product/product line or service responsible for the largest share of their sales revenue.

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.