Profits Net Rising Index
The Graph of the Week showsDemand Net Rising Index, from the July 2010 NABE Industry Survey. From the survey
Profit margins expanded for a fourth consecutive quarter, but growth slowed to a crawl as the NRI slid to 4 in the July survey from 13 in April. The percentage of respondents reporting rising margins held steady at 25%, but the share citing declining margins jumped to 21% in July from 11% in April. One-fifth of firms raised prices last quarter, and only 6% reported cutting prices, compared with the nearly even split between increases and decreases reported in the first quarter. Fewer respondents than in April expect their firms to either raise or lower prices in the coming quarter.
NABE members can read the full survey online. There is a summary available for the public.
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