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New York factories, service firms plan price hikes, surveys find

Nine out of 10 factories across New York

Nine out of 10 factories across New York State and service firms in the metropolitan region expect to raise prices within the next year, according to two surveys by the Federal Reserve Bank of New York. Photo Credit: Craig Ruttle

Nine out of 10 factories across New York State and service firms in the metropolitan region expect to raise prices within the next year, according to two surveys conducted this month by the Federal Reserve Bank of New York.

The bank reported its poll of 100 plants in the state showed 48 percent planned to increase selling prices over the next 12 months but would “stay within 2 percent of current levels.” Another 35 percent said they expected to increase selling prices between 2 percent and 8 percent, and 6 percent said they would hike prices 8 percent or more.

A separate bank survey of about 100 retailers and other service firms on Long Island, in New York City and its northern suburbs found 47.5 percent planned price hikes of 2 percent or less this year, while 38 percent said they expected to increase selling prices between 2 percent and 8 percent. Seven percent said they would raise prices 8 percent or more.

The surveys, released last week, showed many companies expect their costs to increase next year, too. Nearly half of the manufacturers and service firms predicted that their cost of raw materials, other supplies and merchandise would rise by at least 2 percent over the next 12 months. Almost one in 10 anticipate cost increases of 8 percent or more.

The rate of inflation in the metropolitan region is about 1 percent, according to the federal Bureau of Labor Statistics.

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