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

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For Immediate Release
June 6, 2011
Contact: Cristi Allen
callen@decisionanalyst.com
Phone: 817-640-6166

Arlington, Texas—The Decision Analyst U.S. Economic Index ticked up to 95 in May 2011, a 2-point increase from April. This May increase in the Economic Index is welcome news, because the Index had declined for 5 straight months before May. 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 3 years.

Here is the U.S. Economic Index for the past 10 years.

“The increase of the U.S. Economic Index for May is a bit of good news in an otherwise dreary economic landscape. The U.S. economy remains sluggish and vulnerable to a double-dip recession. The Index is predicting a no-growth to slow-growth economy for the second half of 2011,” said Jerry W. Thomas, President/CEO of Decision Analyst. “The economic recovery is delicate, and rising prices for food and energy have reduced consumer buying power. If gasoline and energy prices decline during the second half of 2011, that would be a significant stimulus to the economy."

"Unemployment continues to be a terrible drain on the U.S. economy," said Thomas. "Many state, county, and city governments are cutting employees to balance their budgets. Small businesses are doing slightly better, but are still struggling to get access to credit, so they are not hiring many new employees just yet.”

International Index

The table below compares the U.S. Economic Index to Decision Analyst’s Economic Indices in other countries. Germany has the highest Index in Europe with a score of 103, while France and Spain lag far behind, with Index scores of 80 and 79, respectively. In South America Brazil is leading the way with an Index of 123, and in Asia China leads with an Index of 129.

Census Divisions

The West South Central Division has the highest Economic Index, with a score of 101. The Mountain Division has the lowest Index, with a score of 87. (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 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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