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For Immediate Release
July 2, 2010
Contact: Cristi Allen
callen@decisionanalyst.com
Phone: 817-640-6166

Arlington, Texas—The Decision Analyst Economic Index for the U.S. has trended flat for the past 8 months, and is only up 3 points from June 2009. The U.S. Economic Index registered 95 in June, the same as May. Since the Decision Analyst Economic Index tends to foreshadow the U.S. economy by six to 12 months, it continues to signal that economic growth will be sluggish for the second half of 2010 and into the first half of 2011. Below is the U.S. Economic Index for the past three years.

“The relative flatness of the Economic Index for the past several months indicates that the tough economic times are here to stay for a while,” said Jerry W. Thomas, President/CEO of Decision Analyst. “The greatest limit to economic growth is the lack of access to credit. Consumers are finding it difficult to borrow money. Small businesses cannot borrow money, even those with longstanding banking relationships. The lack of credit for small businesses is prolonging the recession and exacerbating high unemployment. The U.S. government’s efforts to jumpstart the economy with tax credits for autos and housing appear to only have borrowed sales from the future. The financial problems at state, county, school district, and city levels are likewise prolonging the recession, as public employees are cut from the payrolls and budgets are reduced. Economic growth in China is slowing, as it is in Europe, further increasing the downside risks to the global economy,” said Thomas.

International Index

The follow table compares the U.S. Economic Index to Decision Analyst’s Economic Indices in other countries. Germany and Chile appear to have stronger economies than the U.S., while the United Kingdom, Mexico, and Argentina appear to be comparatively weaker. France has the lowest score of all the countries reported. (See table on below.)

 

Census Divisions

The New England and West North Central Divisions appear to be stronger compared to the rest of the country (see map below).

 

The Decision Analyst Economic Index is based on a monthly Internet survey of several thousand households balanced by gender, age, and geography. The online survey is conducted the last 10 days of each month. The Economic Index is calculated from nine different economic measurements using a sophisticated econometric model. The result is a snapshot of current economic activity in each country surveyed, as seen through the eyes of representative consumers living in the respective countries. Decision Analyst conducts its concurrent economic surveys each month in Argentina, Australia, Brazil, Canada, Chile, China, Colombia, France, Germany, India, Italy, Mexico, Netherlands, Peru, Russian Federation, Spain, United Kingdom, United States, and Venezuela.

Whenever the Decision Analyst Economic Index is greater than 110, it tends to signal an expanding economy. An Index value of 100 to 110 suggests a slow-growth economy, and near or below 100 generally indicates economic contraction. These guidelines vary by country, however.

About Decision Analyst

Decision Analyst (www.decisionanalyst.com) is a leading global marketing research and analytical consulting firm specializing in advertising testing, strategy research, new product development, and advanced modeling for marketing decision optimization. The 32-year-old firm delivers competitive advantage to clients throughout the world in the consumer packaged goods, telecommunications, retail, technology, medical, and pharmaceutical industries. In addition, Decision Analyst owns and operates American Consumer Opinion® Online—one of the largest consumer opinion panels in the world—with more than eight million members.

For additional information contact:
Cristi Allen
Publicity
Email: callen@decisionanalyst.com
Phone: 1-800-ANALYSIS (262-5974) or 1-817-640-6166
Address: 604 Avenue H East
Arlington, TX 76011

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