Firms’ Short- And Medium-Term Inflation Expectations

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 2022 BIE Survey dated March 16, 2022 (involving 183 firms responding):

  • Inflation expectations: Firms’ year-ahead inflation expectations increased significantly to 3.8 percent, on average.
  • Current economic environment: Both sales levels and profit margins “compared to normal” decreased over the month. Year-over-year unit cost growth is relatively unchanged at 4.1 percent, on average.
  • Quarterly question: Firms’ long-term (per year, over the next five to 10 years) inflation expectations increased to 3.3 percent, on average.
  • Special question: Firms were asked about their ability to pass cost increases through to their prices. They were then asked how the price of their primary good or service has changed over the last 12 months. Finally, they provided the expected rate of growth in their primary price over the next 12 months and the next five to 10 years. 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 Business 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 February 2022 BIE Survey dated February 16, 2022 (involving 175 firms responding):

  • Inflation expectations: Firms’ year-ahead inflation expectations increased significantly to 3.6 percent, on average.
  • Current economic environment: Sales levels “compared to normal” remain unchanged. Profit margins decreased, though they remain at historically normal levels. Year-over-year unit cost growth increased significantly to 4.0 percent, on average.
  • Quarterly question: Approximately 40 percent of firms expect both labor costs and nonlabor costs to put significant upward influence on prices. About 30 percent of firms expect sales levels and margin adjustments to put moderate upward influence on prices over the next 12 months.
  • Special question: Firms were asked about the business operation disruptions they’ve experienced, if any. They were then asked to rate the severity of their experienced disruptions and estimate how long they will 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.

Businesses’ Inflation Expectations And Expected Wage Growth

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 2022 BIE Survey dated January 12, 2022 (involving 179 firms responding):

  • Inflation expectations: Firms’ year-ahead inflation expectations remain unchanged at 3.4 percent, on average.
  • Current economic environment: Sales levels and profit margins “compared to normal” remain relatively unchanged. Year-over-year unit cost growth increased slightly to 3.7 percent, on average.
  • Quarterly question: Firms’ sales gap (percentage below “normal” unit sales levels) increased significantly to 1 percent above normal and remain at historically high levels.
  • Special question: Firms were asked to decompose their share of labor force by skill level. They were then asked to estimate the average hourly wage by skill level. Finally, they provided the expected wage growth over the next 12 months for each skill level. 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’ Inflation Expectations And Expected Effects 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, 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 2021 BIE Survey dated December 15, 2021 (involving 193 firms responding):

  • Inflation expectations: Firms’ year-ahead inflation expectations increased slightly to 3.4 percent, on average.
  • Current economic environment: Sales levels “compared to normal” decreased over the month, and profit margins remained unchanged. Year-over-year unit cost growth was also unchanged at 3.6 percent, on average.
  • Quarterly question: Firms’ long-term (per year, over the next five to 10 years) inflation expectations increased significantly to 3.2 percent, on average.
  • Special question: Firms were asked to provide their level of concern about COVID-19’s continued persistence as it pertains to different aspects of their business. They were then asked where they expect the state of the COVID-19 pandemic to be one year from now. Finally, firms provided their biggest areas of concern heading into 2022. 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 Influences 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, 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 2021 BIE Survey dated November 10, 2021 (involving 190 firms responding):

  • Inflation expectations: Firms’ year-ahead inflation expectations increased significantly to 3.3 percent, on average.
  • Current economic environment: Sales levels “compared to normal” remain unchanged. However, profit margins increased slightly. Year-over-year unit cost growth is relatively unchanged at 3.6 percent, on average.
  • Quarterly question: Approximately 40 percent of firms expect both labor costs and nonlabor costs to put significant upward influence on prices. About 30 percent of firms expect sales levels and margin adjustments to put moderate upward influence on prices over the next 12 months.
  • Special question: Firms were asked how they intend on improving their profit margins or, if they were higher than “normal,” how they intend on maintaining them. They were then asked how the price of their primary good or service changed over the last 12 months. Lastly, they were asked how they expect the price of their primary good or service to change over the next 12 months. A breakdown of the results can be found in the special question section below.

_____

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.