“As we look out in the second half of the year, we do expect price to moderate as we've consistently said.”

In context

“We continue to execute our strategy for long-term profitable growth. And with that we'll take your questions. Operator: Thank you. [Operator Instructions] Your first question comes from the line of Chad Dillard from Bernstein. Your line is open. Chad Dillard: Hi. Good morning, everyone. James Umpleby: Good morning, Chad. Andrew Bonfield: Good morning, Chad Chad Dillard: So I was hoping you could unpack a little bit more the price cost dynamics as we look through the second half of the year. Can you just like walk through like a segment basis in an enterprise, how to think about that? And at least for the second half do you think price cost will be positive? Andrew Bonfield: Yes. So, overall, so let me start. Obviously, for the full year, price will exceed increases in manufacturing costs. As we look out in the second half of the year, we do expect price to moderate as we've consistently said. However, we are seeing some favorability in manufacturing costs as we saw in the second quarter and we expect that to continue. There will be a continued normalization, particularly in construction of the pricing environment as availability improves and across the industry as a whole. We expect price to be positive in Energy & Transportation in the second half. And that will offset any weakness that we may see in Construction Industries. So, overall, as I just pointed out in my comments, we do expect favorability in manufacturing costs and that will offset actually the volume decline that we expect impact on margins in the third quarter. Operator: We'll move next to Jamie Cook at Truist Securities. Jamie Cook: Hi. Good morning and congrats on a nice quarter. James Umpleby: Thanks, Jamie.”