Washington
Cnn
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In the New England region, a clothing store re-marked the items for sale during the summer to cover the cost of prices. A automotive dealer in New York stated that his inventory had been exhausted by the Americans rushing to get ahead of the prices. And an electronics manufacturer said that President Donald Trump’s police policy “raises hell with companies.”
These accounts – and the image they paint on the American economy – come from various surveys on companies published this week of the Federal Reserve, the Institute for Offer Management (ISM) and S&P global. Overall, they show that companies of all sizes and between industries are launching through an uncertainty fog from Trump policies, including its booming prices.
The term “price“Was mentioned 80 times in the” Beige Book “report of the Fed, a periodic collection of responses to the investigation of companies across the country, while” uncertainty “has been mentioned 76 times.
Companies and consumers have been On the edge since the start of the yearBut the latest surveys show that Trump’s policies are clearly affected throughout the economy, affecting inflation, hiring and finance of many companies – while while consumers are trying to determine whether to spend now or wait later.
Economic investors and decision-makers are driving in surveys like these, which can help assess economic conditions earlier than official government data.
Prices have been expected to increase prices for a long time, and even if a large part of Trump’s trade policy is in question by the courtsMany companies claim that their contribution costs have increased. Some have already increased consumer prices.
“Most suppliers are under full value for us,” said a chemical manufacturer in ISM. “The post communicated is that the supplier considers it as a tax and that the taxes are always transmitted to the customer.”
A supplier of heavy construction equipment in the New York Fed region said they have increased the prices of goods not affected by prices to take advantage of the additional margin before prices increase their costs. “The responses of the beige book were collected from the end of April to May 23, so it does not understand the reaction of companies to the two recent court decisions by arguing that the president has exceeded his authority to impose most of his import levies.
“Contacts between industries, especially those of manufacturing and construction, said they had increased prices to cover costs related to prices and high prices of materials such as steel,” said Fed in its report. Wednesday, American prices on steel and aluminum imports 50% doubledthat should additional increase The cost of construction projects and household appliances.
In addition to prices, Trump’s erratic trade war also affects the labor market.
An endowment agency in the Chicago Fed district said that “many companies had interrupted hiring due to economic uncertainty”. In Richmond, Virginia, a sales consultant told the Fed that she planned to reduce the 20% “due to the drop in income and uncertainty about future affairs.”
In recent months, many Americans have rushed into stores or have repeatedly clicked the “Add to basket” button to avoid future price increases on prices, according to economic data. But this wave of expenses can end at its end – if it is not already did not do so.
Retail sales jumped 1.7% in March from the previous month, the strongest monthly gain in two years, widely shot by the sales of car sales, according to data from the Commerce Department. Retail expenses slowed down the following monthCar sales slightly decreasing.
But the demand for vehicles could soon take a turn for the worst, because many consumers have already hung a car and a 25% price is currently in place on all imports of automotive parts and parts.
“A dealer expected a sticker shock linked to the price to reach customer demand from early June,” said the Fed report. In the Philadelphia Fed district, some dealers have recently declared “a slight drop in automotive sales”.
Certain universe retailers have already noted “certain proofs of softening the demand of consumers who should alleviate future sales”. In the District of St. Louis Fed, companies said that “retail sales have decreased slightly, in particular for discretionary articles”.