Source: Federal Reserve Bank of Atlanta

Question 1: How do your sales levels compare with sales levels during
what you consider to be “normal” times?

Much Somewhat About Somewhat Much Diffusion
Less Less Normal Greater Greater Index*

November 26% 32% 25% 15% 2% -32
December 21% 39% 22% 16% 2% -31
January 18% 38% 28% 16% 1% -27

Question 2: How do your current profit margins compare with “normal”
times?

Much Somewhat About Somewhat Much Diffusion
Less Less Normal Greater Greater Index*

November 24% 41% 24% 11% 0% -39
December 21% 42% 25% 11% 1% -36
January 20% 36% 34% 10% 0% -34

Question 3: Looking back, how do your unit consts compare with this time
last year?

About Up Up Up
Down Unch Somewhat Moderately A Lot Average
(5%)

November 8% 19% 55% 12% 5% 1.7
December 8% 25% 41% 18% 7% 1.8
January 9% 27% 47% 14% 3% 1.5

Question 4: Projecting ahead, to the best of your ability, please assign
a percent likelihood to the following changes to unit costs over the
next 12 months:

About Up Up Up
Down Unch Somewhat Moderately A Lot Average
(5%)

November 7% 24% 39% 22% 8% 2.0
December 9% 28% 35% 18% 10% 1.9
January 6% 31% 37% 18% 8% 1.8

Question 5

Projecting ahead over the next 12 months, how do you think the following
five common influences, will affect the prices of your products and/or
services?

Strong Moderate Little Moderate Strong
Downward Downward or No Upward Upward Diffusion
Influence Influence Influence Influence Influence Index

Labor Costs
November 0% 3% 41% 51% 5% 29
December 0% 5% 45% 47% 3% 24
January 0% 5% 41% 51% 3% 26

Non-Labor

November 0% 2% 30% 52% 15% 40
December 2% 5% 27% 52% 14% 36
January 1% 4% 30% 51% 14% 36

Productivity

November 1% 16% 69% 13% 1% -1
December 0% 14% 70% 16% 1% 1
January 1% 15% 62% 22% 0% 3

Margin Adjustments

November 3% 19% 63% 16% 0% -4
December 1% 14% 61% 22% 2% 5
January 2% 12% 66% 20% 1% 3

Sales Levels

November 3% 18% 47% 31% 1% 5
December 1% 22% 44% 29% 4% 6
January 4% 13% 45% 34% 3% 9

** Market News International Washington Bureau (202) 371-2121 **

[TOPICS: MAUDT$,MTABLE,MMUFE$,MGU$$$,MFU$$$]