Insert graphic here:
width: 175px
height: 64px
 |
|||||
 |
 |
 |
 |
 |
 |
|
For Immediate Release
PURCHASING MANAGERS REPORT HIGHER PRICES
Connecticut purchasing managers report paying higher prices for goods and services and expect the trend to continue next year, due to the effects of the severe hurricane season. They are also concerned about a continued slow growth of the state’s economy, according to the latest survey conducted by the Connecticut Business & Industry Association (CBIA) and the Connecticut Association of Purchasing Management ( CAPM ). “The respondents’ answers indicate that current conditions are somewhat slower than indicated in prior surveys this year,” said Peter Gioia, CBIA economist. “It also raises concerns about future signs of inflation.” More than three-quarters (88 percent) of purchasing managers responding to the third-quarter survey said they are paying higher prices for principal items. That’s up from 80 percent a year ago. Less than 2 percent report lower prices. Nearly a third of purchasing managers (32 percent) said the effects of hurricanes Rita and Katrina will cause prices for goods and services they purchase to rise over the next 12 months. Of those expecting price increases, 40 percent said prices will rise between 1 percent and 5 percent, and nearly half (47 percent) expect prices to rise between 6 percent and 19 percent. Fifteen percent expect to see prices rise more than 20 percent for the goods they buy. The numbers are similar for items sold by these firms, with 49 percent expecting to sell their products for higher prices. More than half (55 percent) expect prices to rise 1 percent to 5 percent. Nearly a third (31 percent) expect 6 percent to 19 percent price increases. Ten percent expect prices to rise more than 20 percent over the next year. “Certainly the hurricanes didn’t impact all firms, but for a sizable number of them, the extreme weather will lead to modest to substantial price and cost increases,” said Bob Sember, CAPM president. Other key findings include: Job numbers flattened this quarter. Twenty-three percent of respondents said they increased the number of permanent employees, compared with 29 percent last quarter and 23 percent a year ago. Only 15 percent said they trimmed their workforces, compared with 19 percent last quarter and 20 percent a year ago. Sixty-three percent said their workforce remained the same. Production levels that had fallen in 2003 and improved in 2004, have fallen again in all three quarters of 2005. In this quarter, 27 percent had stronger production levels, compared with 40 percent last survey. Seventeen percent had lower levels, compared with 20 percent last survey. Those reporting the same conditions jumped to 56 percent this survey, compared with 40 percent last quarter. New orders have also shifted significantly, compared with the last survey. Only 23 percent report more orders this quarter, compared with 42 percent last quarter. The largest amount, 62 percent, report the same number of orders, compared with 33 percent last quarter. Fifteen percent report fewer new orders this survey, compared with 26 percent last survey. The survey was conducted by mail and e-mail from Oct. 10 - Nov. 3, 2005. A total of 199 respondents completed the survey, for a return rate of 13 percent and a margin of error of plus or minus 7 percent. CBIA is the state’s largest business organization, with more than 10,000 members. ### For a copy of the survey, visit www.cbia.com/newsroom/surveys. For more information contact Nancy Andrews, CBIA media relations manager, at 860-244-1957 or andrewsn@cbia.com. 350 Church
Street · Hartford, CT 06103-1126 · cbia.com/newsroom
|
 |
© Copyright 2003 Connecticut Business & Industry Association, cbia.com. All rights reserved. |
 |
