US firms avoid price hikes despite high cost


A cyclist passes the Federal Reserve headquarters in Washington. — Reuters

NEW YORK: Many US companies plan to resist boosting prices in the coming months, even as their costs mount and profit margins come under pressure, a new survey from the National Association for Business Economics (Nabe) shows.

More than half of panellists reported material costs rising at their firms in the third quarter, according to the survey released yesterday.

However, 65% said there had been no change in prices charged in the quarter, and a similar share expect flat prices in the next three months.

That squeeze is one of several challenges pressuring business recently, according to the survey of 58 Nabe members, all of whom work at private-sector firms or industry trade associations. 

Companies have adapted to all the uncertainty with “measured hiring and investment decisions,” Nabe president Gregory Daco, chief economist at EY-Parthenon, said in a statement.

“However, policy uncertainty and concerns about slowing demand remain top of mind for businesses as they look ahead.” 

Among other findings, more respondents said employment rose rather than fell in the third quarter, the first time that’s happened in the quarterly survey since 2024. — Bloomberg

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