More Companies Raised Prices in 2nd Quarter

A third of U.S. businesses made up for higher costs by raising prices during the second quarter, the most to do so in five years, according to a survey of company economists. The poll of 127 members of the National Assn. for Business Economics found 33% of the businesses raised prices, contrasted with 29% in the first quarter. It was the largest percentage since the first quarter of 1995, when 39% of firms raised prices. More than 8 of 10 companies that reported price increases said they were able to maintain the hikes for the most part, suggesting “something has clearly changed in the ability of firms to raise prices over the last six months,” said Diane Swonk, NABE’s president and chief economist at Bank One Corp. in Chicago.