The latest Business Conditions Survey from the National Association for Business Economics (NABE) reveals rising sales and profit margins, ongoing labor shortages, and easing inflation in the first quarter of the year:
- The percentage of NABE panelists reporting rising sales minus the percentage reporting falling sales — or the Net Rising Index (NRI) for sales — increased from 37 in January to 49 in April, the highest reading since the April 2022 survey.
- The NRI for profit margins continued to climb in April, reaching 24, the highest reading since the October 2021 survey.
- The NRI for prices charged rose from 23 to 33 in April, and more respondents reported that their firms raised prices over the past three months compared to the January survey.
- Labor shortages continue, with 36% of panelists starting off the year with shortages, an increase from 29% in January.
Looking ahead to the next three months, “fewer panelists than in January expect their firms’ sales or profit margins to increase,” said Ellen Zentner, NABE President and chief U.S. economist at Morgan Stanley.
Most (64%) are also anticipating prices charged to remain “unchanged” over the next three months. “The results also suggest that inflation is still with us, but may be easing,” said Carlos Herrera, NABE Business Conditions Survey Chair and chief economist at Coca-Cola North America.
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