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

Bank of New Hampshire

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

Comptus

outputPrice = Producer Price Index by Commodity: Machinery and Equipment: Miscellaneous Instruments

inputPrice = Producer Price Index by Commodity: Metals and Metal Products: Nonferrous Metals

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

Make your argument based on your analysis of the given charts.

Grappone: My biggest takeaway from Grappone’s graph is how steady the output price was compared to the input price. However, in 2020 the input price jumped over 150% in a two year period. This forced the output price to rise slightly but nowhere near enough to makeup for the huge increase in the input price.

Bank of New Hampshire: Banks profit margin is determined by the gap between short and long term rates. With 10 year rates and 3 month rates approaching similar yields their profit margin was lost by the rates getting too close together.

Comptus: Similar to Grappone, the industries output prices and much more stable compared to their input costs. Similar to most industries an increase in production cost is followed by an increase in cost for consumers. Based exclusively off the chart it appears as though Comptus should be regaining their profit margin as their input costs have dropped while the output price has increased significantly.