Business Inflation Expectations unchanged

• Inflation expectations: Firms' year-ahead inflation expectations went virtually unchanged at 1.5 percent, on average.
• Current economic environment: Sales levels and profit margins "compared to normal" remain at historically low levels. Year-over-year unit cost growth remains at 1.2 percent, on average.
• Quarterly question: The majority of firms expect labor costs and non-labor costs to put moderate upward influence on prices over the next twelve months.
• Special question: Firms indicated the degree of disruption they've experienced with regard to their sales activity, suppliers/supply chains, and ability to maintain adequate staffing levels as a result of the outbreak of COVID-19. They also provided their expectations of when these elements of their business might be free of disruption. A breakdown of the results can be found in the special question section below.