Shortening the duration of tasks in companies and works or, in the case of restaurants, reducing the size of their portions, are some of the adjustments that are taking place in the country in the face of inflation and the deterioration of financial conditions.
The Central Bank released this Wednesday the August 2022 Business Perceptions Report, detailing some examples how inflation is impacting the portfolio of companies and businesses.
In fact, it is mentioned that the latter have seen how their profit margins have been squeezed and their sales have been reducedwhile in parallel they must face high costs of products and supplies.
“(…) Some companies, instead of continuing to increase their prices, have adopted alternative strategies, such as shortening the duration of chores or, in the case of restaurants, reducing the size of their portions”specified the report.
The global performance of the businesses began to show signs of deterioration, consolidating the prospects of “a scenario of less activity.
The companies commented that their sales levels have decreased in recent months, but with a variable perception between different items.
Salary readjustments and financial conditions
In the report of the issuing institute, it was commented that although companies perceive an increase in their labor costs, “the salary readjustments on average are similar to or below the CPI”while its frequency has decreased significantly compared to what companies usually did.
Also, there is a perceived deterioration in financial conditionsbeing the rise in interest rates the main cause behind that trial.
“The percentage of companies that have applied for a loan in the first half of the year is reduced. Not needing it continues to be the main reason for not asking for loans, although its prevalence is reduced compared to six months ago, ”he pointed out.
Finally, and according to the document, the expectations of the companies point to a deterioration in their performance, mainly associated with the reduction of their future sales levels. They also foresee a stabilization of their prices, while costs continue to risealthough to a lesser extent than previously experienced.