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Economic Index Syndicated Study
Decision Analyst's Economic Index is based on a monthly Internet survey designed
to produce a snapshot of current economic activity, as seen through the eyes of
representative consumers.
Measurements
The Index itself is calculated from nine different economic measurements, using
a sophisticated econometric model. The nine measures are:
- Expected trend for stocks and mutual funds over the next six months.
- Availability of new jobs in region.
- Price trends for goods and services.
- Respondents' employment status.
- Expectations of layoffs and staff reductions at place of employment.
- Changes in staffing levels at place of work.
- Estimate of current level of business activity at place of work.
- Credit availability (relationship of spending to available credit limits).
- Purchase intent over next 12 months for high-ticket items.
Interpreting The Index
Although the Economic Index is not a precise measure of absolute economic activity,
it is nonetheless a remarkably powerful tool for understanding and predicting
the economy. With its emphasis on measuring consumer opinions and perceptions,
it provides genuine insight into that great intangible behind economic growth—confidence.
There are two ways of interpreting the Economic Index. First, its "direction"—whether
it is rising or falling. Second, the values themselves provide a reliable guide:
when the Index is greater than 110, it tends to signal an expanding economy.
An Index value of 100 to 110 suggests a stagnant economy, and below 100 generally
indicates economic contraction.
Reports
The Index includes reports of the state of the consumer economy by country.
The reports assess changes each the country’s Economic Index vis-à-vis
the macroeconomic environment and will assess the likely future direction the
economy appears to be taking.
Methodology
Tracking of the Index began in May 1999 in the United States and Canada. It
has expanded over the years and is currently tracked in 19 countries. The Index
is based on a monthly Internet survey balanced by gender, age, and geography
to achieve nationally representative samples. These measures are compiled from
an online survey of several thousand households balanced by gender, age, and
geography. The survey is conducted in the last 10 days of each month, and the
new Index value is calculated immediately thereafter. The data is collected
via online survey from American Consumer Opinion® Online panel.
The International Index
The Economic Index is conducted in:
| Europe |
South America |
Germany
France
Italy
Netherlands
Russia
Spain
United Kingdom
|
Argentina
Brazil
Chile
Colombia
Peru
Venezuela
|
| Australia/Asia |
North America
|
Australia
China
India |
Canada
Mexico
United States |
Market Intelligence Services
Decision Analyst is a leading global marketing research firm and analytical
consulting firm. If you would like more information on the Economic Index Syndicated
Study, please contact Jerry W. Thomas, President/CEO (jthomas@decisionanalyst.com),
or call 1-800-ANALYSIS (262-5974) or 1-817-640-6166.
Additional Resources from Decision Analyst
Economic Analysis Services
Advanced Analytics Brochures
Economic Analysis White Papers