Buyers say price increases are way up

By Staff -- Purchasing, 11/4/1999

BUYERS ARE PREPARING FOR ACROSS-THE-BOARD PRICE INCREASES. Three quarters of buyers surveyed are facing price increases, a huge jump from last month.

Only 47% of buyers surveyed expect business conditions to be better in six months time. This is off 18 points from last month, and the lowest number since June. Fifteen percent expect business to be worse--that's triple last month's figure--and 38% expect it to be the same.

Materials availability remains good. Only 8% of buyers say materials are tight (flat when compared with last month), and the vast majority--84%--say conditions are normal. Only 8% report loose availability--a drop of two points compared with last month.

Physical inventories are in flux. While 54% are holding inventories steady, that's a 16-8point drop compared with last month.

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