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MNI Chicago Survey™: Evidence for Stronger Price Push Back

US DATA
MNI (London)

The Chicago Business Barometer™ Survey asked firms about buyer leverage dynamics in March.

  • When asked whether firms were able to push back on higher prices from suppliers, approximately 13.8% responded yes, whilst an additional 51.7% were partially able to do so.
  • Respondents noted that buyer leverage is improving and the ability to push-back was in part dependent on the type of goods.
  • The March Chicago Survey also asked firms whether they were managing to pass on the higher costs of doing business to customers.
  • An aggregate 85.2% of respondents were managing to increase prices (37.0% said yes, 48.2% responded some of it), whilst 14.8% were unable to do so. This compares to 90% managing to increase prices in November, implying that the amount of customer push-back has only marginally increased.
  • As such, the special question data signals more pushback on prices charged, which contributes to the narrative of cooling factory-gate inflation in coming months.


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