More than 40% of retailers, service firms and manufacturers have raised prices because of supply shortages – and most don’t see any relief in sight, according to two polls released by New York’s top bank on Monday.
The Federal Reserve Bank of New York found 41% of retailers and service firms in the metropolitan area saying they "had hiked prices within the past three months in response to supply disruptions" caused by the coronavirus pandemic.
Multiple waves of COVID-19 cases have shuttered materials factories in the United States and overseas. The virus also has led to a dearth of truck drivers, cargo ship workers and harbor personnel.
In a separate survey, 64% of manufacturers across the state told the New York Fed that they have raised prices after being unable to obtain raw materials.
Neither group is expecting circumstances to change in the near future, with only about 5% predicting supplies would become more available next month.
"Slightly over a third of service firms and almost half of manufacturers said they expect the availability of supplies to worsen further," the bank said on Monday.
The New York Fed surveyed about 125 manufacturers and about 200 service firms in Oct. 1-8, with Long Islanders participating in both polls.
Besides increasing prices in the face of supply shortages, 60% of factories are turning out fewer products and 25% of retailers have reduced their operations.
"The vast majority of businesses in both surveys said they did not make any reductions to either employment or [workers’] hours," the bank said.
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