Economic Dashboard

Grappone

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

What is happening to your client business’s profit margin?

Make your argument based on your analysis of the given charts

Based on the data from the charts we can see that the car data Based on the data given in the charts we can see that out price has increased, so if just were to have looked at that chart you would thing that Grappone’s profit margins would be increasing. But once you look at the Input Price you realize that their input price has also increased quite a bit, and when I mean quite a bit I mean exponentially. The exponentially input put price growth has started to slow down which is good, but as a whole in general Grappone’s profit margin’s are still shrinking as their input price is increasing much faster than their output price.

Sources: U.S. Bureau of Labor Statistics, Producer Price Index by Industry: New Car Dealers: New Vehicle Sales [PCU441110441110101], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/PCU441110441110101, September 29, 2022.

U.S. Bureau of Labor Statistics, Consumer Price Index for All Urban Consumers: New Vehicles in U.S. City Average [CUSR0000SETA01], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/CUSR0000SETA01, September 28, 2022.