The Cleveland Fed’s latest edition of the Survey of Regional Conditions and Expectations (SORCE) was administered during September. Special questions focused on changes in Fourth District firms’ nonlabor costs, selling prices, revenue, and wages and salaries.
The Cleveland Fed’s latest edition of the Survey of Regional Conditions and Expectations (SORCE), administered during September, included a set of special questions alongside the standard question set that informs the SORCE indexes.
These special questions focused on changes in Fourth District firms’ nonlabor costs, selling prices, revenue, and wages and salaries.
Respondents indicated that their businesses’ nonlabor costs had increased by an average of 6.8% over the past 12 months. On average, wages and salaries had risen by 4.8%, selling prices by 3.3%, and revenue by 2.9% over the same period.
Roughly two-thirds indicated that they had raised prices to offset some portion of these higher costs, and more than half noted adopting new technologies or increasing automation to reduce overall nonlabor operating expenses.