This page provides an insight into the pass-through of movements from input costs to output prices. The input-output price line is calculated using the Purchasing Managers' Index survey sub-components to show business expectations of costs and output prices. However, this chart shows that profit margin still expands when input prices are expected to rise faster than output prices. This is because not all businesses are sensitive to input cost increases and some companies, especially those with a large fixed costs, can still expand their profit margin when businesses improve.