outputPrice = Consumer Price Index for All Urban Consumers: New Vehicles in U.S. City Average
inputPrice = Producer Price Index by Industry: New Car Dealers: New Vehicle Sales
outputPrice = Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
inputPrice = Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
outputPrice = Producer Price Index by Commodity: Machinery and Equipment: Miscellaneous Instruments
inputPrice = Producer Price Index by Commodity: Metals and Metal Products: Nonferrous Metals
My client business is Bank of New Hampshire. My client business’ profit margin has not been very stable the last 6 years. From 2014-2016, Bank of New Hampshire had very low input prices, or short-term interest rates, and they also had very high output prices, or long-term rates. Their profit margin was very good, and everythign seemed to be fine. After 2016, both the input and output prices have gone up and down a lot. Especially 2019 was bad for Bank of New Hampshire, because short-term rate was higher than long-term rate. This means that they are losing money by lending, because they are in the lending business. What they have done is pay more but charge less on the loan that they make. From 2016-2019 the input prices rose in yield from 0.1 to 2.5%. At the same time, input prices were very unstable, and went up and down all the time.
Since March 2019, my client business’ input prices have decreased drastically, and the output prices have also dropped, but not as much as the input prices, which gave them an okay profit margin. *During the pandemic there were not a lot of input or output prices, but since September 2021, both short-term and long-term rates have increased at almost the same rate, with long-term rates always being a bit higher. This means that Bank of New Hampshire has over the last 8 years usually had a positive profit margin, but the profit is nowhere near as high as it was in 2014-2016.