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Home | Press Room | Press Release Archives | Economic Index March 2011

For Immediate Release
April 5, 2011
Contact: Cristi Allen
callen@decisionanalyst.com
Phone: 817-640-6166

Decision Analyst’s U.S. Economic Index Down Slightly in March
 

Arlington, Texas—The Decision Analyst U.S. Economic Index registered 94 for March 2011, a 1–point drop from February’s Index of 95. Throughout the past 12 months, the U.S. Economic Index has moved sideways, fluctuating between 94 and 96 most of the time. The U.S. Economic Index is a leading indicator (tending to foreshadow overall economic activity by 6 to 12 months). Here is the U.S. Economic Index for the past 10 years.

“The U.S. Economic Index continues to predict a slow economic recovery for the balance of 2011, despite massive governmental stimulus. The slow growth equates to little margin for error,” said Jerry W. Thomas, President/CEO of Decision Analyst. “Any major shock to the U.S. economy could easily tip it back into a recession. The rising profitability of large U.S. corporations is a positive sign for the future, especially if those companies choose to invest that money in the U.S. economy. Small businesses are doing better, but still struggling to get access to credit at reasonable rates. The reductions in employment and spending at state, county, and city levels will be a drag on the U.S. economy over the next 2 years. The risks of additional increases in commodity prices, and the debt and deficit problems of the U.S. government—and Ireland, Portugal, Greece, Japan, etc.—are some of the possible shocks that pose danger to the U.S. recovery.”

International Index

The table on the next page compares the U.S. Economic Index to Decision Analyst’s Economic Indices in other countries. Germany is leading the recovery in Europe with an Index of 106, while France lags far behind with an Index of 77. In South America, Brazil is leading the way with an Index of 122, and in Asia, China leads with an Index of 127.

Decision Analyst International Economic Indices
March 2011

 
North America
Index
United States 94
Canada 95
Mexico* 92
Europe
Index
France 77
Germany* 106
Italy 85
Spain* 80
United Kingdom 81
South America
Index
Argentina* 94
Brazil 122
Chile* 113
Colombia* 104
Australia/Asia
Index
Australia* 94
China* 127
India 121
 
* The Index numbers for Argentina, Australia, Chile, China, Colombia, Germany, Mexico, and Spain are a three-month moving average to smooth out month-to-month fluctuations. The reported Index number averages the current month with the two previous months.

 

Census Divisions

The West South Central and the Middle Atlantic Divisions each have an Index of 97, the highest scores of all the U.S. Divisions. Meanwhile the Pacific and Mountain Divisions have the lowest score, an Index of 92. (See map below.)

 

Three-Month Moving Average

The Index numbers for Argentina, Australia, Chile, China, Colombia, Germany, Mexico, and Spain are a three-month moving average to smooth out month-to-month fluctuations. The reported Index number averages the current month with the two previous months.

Methodology

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 in the last 10 days of each month. The Economic Index is calculated from 9 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 90 to 110 suggests a no-growth or slow-growth economy, and near or below 90 generally indicates economic contraction. These guidelines vary by country, however.

About Decision Analyst

Decision Analyst (www.decisionanalyst.com) is a global marketing research and analytical consulting firm specializing in strategy research, new product research, advertising testing, and advanced modeling for marketing decision optimization. The 33-year-old firm delivers competitive advantage to clients throughout the world in the consumer packaged goods, telecommunications, retail, technology, medical, and automotive industries.

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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