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69% Of U.S. Senior Executives Have Passed on Increased Energy Costs to Customers in Form of Higher Pricing

Posted on: Monday, 29 September 2008, 09:00 CDT

In a national survey of senior U.S. business executives by Grant Thornton LLP, the U.S. member firm of Grant Thornton International Ltd, one of the six global audit, tax and advisory organizations, 69 percent have passed increased energy costs on to customers by way of higher pricing. The survey was conducted between August 18th and August 29th, 2008. More than 350 senior executives from various industries responded to the survey.

A majority of those surveyed see no change in the U.S. economy in the next six months, with their hiring to remain constant. But when it came to the prospects of their own company during this same time span, 81 percent were optimistic.

The Grant Thornton Business Optimism Index, a quarterly confidence measure of U.S. business leaders, increased slightly to 57.3 in August 2008 in relation to the 56.1 index in May 2008 and the 56.3 index in February 2008.

Energy: Has the increase in energy costs caused you to increase your costs to your customers?

Yes, we've significantly raised prices 28% Yes, we've slightly raised prices 41% No, it has had no affect on our business 31%

U.S. economy: Do you feel the U.S. economy will improve/remain the same/get worse in the next six months?

Remain the same 55% Get worse 23% Improve 22%

Business growth: How optimistic are you about the growth of your own business over the next six months - very/somewhat optimistic/pessimistic?

Somewhat optimistic 63% Very optimistic 18% Somewhat pessimistic 18% Very pessimistic 1%

Employment: Do you expect the number of people you employ will increase/remain the same/decrease in the next six months?

Remain the same 54% Increase 37% Decrease 9%

To see all the findings from Grant Thornton's Business Optimism Index click here.

About the Grant Thornton Business Optimism Index

The Grant Thornton Business Optimism Index, a quarterly survey of U.S. Business Leaders, is comprised of three measures:

-- U.S. economy: Business leaders' perceptions of whether the U.S. economy will improve remain the same or deteriorate in the next six months.

-- Business growth: Business leaders' perceptions about the growth of their own businesses over the next six months.

-- Hiring expectations: Whether business leaders expect the number of people their companies employ to increase, remain the same or decrease in the next six months.

The survey was conducted between August 18th and August 29th, 2008. More than 350 senior executives from various industries responded to the survey.

About Grant Thornton LLP

The people in the independent firms of Grant Thornton International Ltd provide personalized attention and the highest quality service to public and private clients in more than 100 countries. Grant Thornton LLP is the U.S. member firm of Grant Thornton International Ltd, one of the six global audit, tax and advisory organizations. Grant Thornton International Ltd and its member firms are not a worldwide partnership, as each member firm is a separate and distinct legal entity.

In the U.S., visit Grant Thornton LLP at www.GrantThornton.com.

Source: Business Wire

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