In short supply, 41% of retailers, 64% of factories, prices rise
More than 40% of retailers, service companies and manufacturers have raised prices due to a lack of supplies – and most see no 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 companies in the metropolitan area said they had “raised prices within the last three months in response to supply disruptions” caused by the coronavirus pandemic.
Several waves of COVID-19 cases have closed material factories in the United States and abroad. The virus has also led to a shortage of truck drivers, cargo ship workers and port staff.
In a separate survey, 64% of producers across the state of New York told the Fed that they have raised prices after being unable to procure raw materials.
None of the groups expect circumstances to change in the near future, with only about 5% predicting that supplies will become more available next month.
“Just over a third of service companies and almost half of manufacturers said they expect the availability of supplies to deteriorate further,” the bank said Monday.
The New York Fed surveyed about 125 manufacturers and about 200 service companies in the 1st-8th. October, where the Long Islanders participated in both polls.
In addition to rising prices due to lack of supplies, 60% of factories show fewer products and 25% of retailers have reduced their operations.
“The vast majority of companies in both surveys said they did not make any reduction in either employment or [workers’] hours, “the bank said.
James T. Madore writes about Long Island business news, including economics, development, and the relationship between government and business. He previously served as head of Albany.
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