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Just under a third of small businesses plan to raise prices in the next six months, ADP Chief Economist Nela Richardson said Tuesday, driven by higher import and production costs and firms' efforts to recover revenue lost during the pandemic.
"Firms are not shy about raising prices in the next six months," Richardson said during a webinar following the release of ADP's inaugural quarterly Small Business@Work Survey, conducted between May 10 - 25.
Richardson expects price increases to be temporary as supply shortages wane. Roughly 13% of the 2,000 businesses surveyed by ADP cited increases in input prices or production costs as a key challenge to growth.