US DATA: Feb Atlanta Fed business inflation survey est +1.9% in
unit costs for coming yr vs +1.8% in Jan. Survey was conducted Feb 13-17
with 168 Atlanta-area firms responding. Firms say they “are still
operating in an environment of below normal sales and depressed margins”
and anticipate labor costs will put little or only moderate upward
pressure on prices. But in Feb 74% predict a moderate or strong upward
influence on prices from materials and other non-labor inputs. Special Q
has long horizon and respondents project unit costs +2.9%/yr over the
next 5-10 years.