Economic Recovery Continues in 2010: Institute for Supply Management
PRICES — Changes Between End of 2008 and End of 2009
After an initial forecast in April 2009 of a 5.3 percent decrease in prices paid, survey respondents now report realized price decreases averaging 4.6 percent for the year. The 13 percent who say their prices are higher now than at the end of 2008 report an average increase of 11.7 percent, while the 63 percent who report lower prices averaged a 9.7 percent decrease. The remaining 24 percent indicate no change between the end of 2008 and the end of 2009. The three industries reporting price increases — in order of percentage increase — are: Plastics & Rubber Products; Petroleum & Coal Products; and Machinery.
As 2009 draws to a close, non-manufacturing supply managers report prices they pay have decreased by 2.2 percent over the entire year. This is less than the “no price change” they predicted in April 2009, and less than the 2.3 percent increase reported one year ago for 2008. Thirty-five percent of purchasers report price increases averaging 5.5 percent. Forty percent of purchasers indicate decreased prices with an average reduction of 10.1 percent, and 25 percent of respondents have not experienced overall price changes this year. The three industries reporting price increases in 2009 are: Health Care & Social Assistance; Accommodation & Food Services; and Educational Services.
Non-Manufacturing Price Changes Between End of 2008 and End of 2009
PRICES – Predicted Changes Between End of 2009 and April 2010
Thirty-eight percent of purchasing and supply managers expect the prices they pay to increase in early 2009 by an average of 5.5 percent. At the same time, 18 percent anticipate decreases averaging 10.5 percent. Including the 44 percent who expect no change in prices in the first four months of 2010, purchasers expect the net average overall price change to increase 0.2 percent for the first four months of 2010. The 10 industries predicting increases in prices paid for the first part of 2009 — in order of percentage increase — are: Transportation Equipment; Computer & Electronic Products; Food, Beverage & Tobacco Products; Furniture & Related Products; Miscellaneous Manufacturing(a); Nonmetallic Mineral Products; Paper Products; Printing & Related Support Activities; Chemical Products; and Machinery.