Companies in U.S. Plan to Increase Prices, Limit Hiring to Boost Profits

[marmar]

from Bloomberg:





U.S. Companies to Raise Prices Amid Soaring Costs, Survey Says

By Timothy R. Homan

July 21 (Bloomberg) -- More companies in the U.S. plan to boost prices and limit hiring as the surge in raw-material costs hurts profits, a private survey found.

Almost four times as many businesses plan to charge their customers more next quarter than expect to reduce prices, according to the National Association for Business Economics. A net 9 percent of employers said they would increase payrolls over the next six months, the fewest in five years.

The report reinforces concern that rising expenses will contribute to a further pickup in inflation and a weakening in the labor market. A net 71 percent of firms said costs rose last quarter, up from 65 percent in the previous three months and the most since records began in 1994, the poll showed.

``The rising costs of materials and other non-labor inputs are a big concern and a big drag on profitability,'' Ken Simonson, chief economist for the Associated General Contractors of America in Alexandria, Virginia, and board member of the business group, said in an interview.

The number of respondents saying profit margins declined last quarter exceeded those registering gains by 13 percent, the biggest differential since the 2001 recession.

Soaring expenses for raw materials forced businesses to pass on higher costs to consumers last quarter, the survey showed. A net 28 percent, the highest since the first quarter of 2007, said they increased prices from April through June. .......(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=a.mPaZFLEvaA&refer=home

[liberal N proud]

1. Don't forget freeze wages

Most companies will not provide salary increases for the employees they already have this year.

Your just damn lucky to have a job.