For Immediate Release July 9, 2002
Contact: Cristi Allen
callen@decisionanalyst.com
Phone: 817-640-6166

Dallas-Fort Worth—The current crisis of confidence in corporate accounting and the resulting weakness in stock market prices has been dragging down consumer perceptions of the U.S. economy, according to the Decision Analyst U.S. Economic Index for June.

The Index, based on a nationwide Internet survey conducted the last 10 days of the month, indicates that U.S. economic activity held steady in June, dropping only one point – to 111 from May’s 112.

Although there was a sharp uptick in consumer reports of increased business activity at their workplaces during June, consumer perceptions of future stock market prices dropped significantly, and consumer plans to buy high-ticket products within the next six months were flat.

"There seems to be a disconnect between the stock market and the ‘real’ economy," said Jerry W. Thomas, CEO and President of Decision Analyst. "It appears that negative news about companies’ accounting and the markets is a major ‘drag’ on the economy right now. Too much bad news could tip the economy back into recession."

The Decision Analyst Economic Index has stayed in the 110-to-115 range since January 2001, except for lows of 109 in July and September 2001, and 108 in December 2001. This movement is consistent with reports of a weak economic recovery.

Methodology

The Decision Analyst Economic Index is based on a monthly Internet survey of several thousand households balanced by gender, age, and geography. The survey is conducted over the Internet during the last 10 days of each month, and the index is immediately calculated from nine different economic measurements, using a sophisticated econometric model. The result is a snapshot of current U.S. economic activity, as seen through the eyes of representative consumers. Decision Analyst also conducts similar economic research in Canada, the U.K., Germany, France, Italy, and Australia. Whenever the Decision Analyst Economic Index is greater than 110, it tends to signal an expanding economy. An index of 100 to 110 suggests a stagnant economy, and an index below 100 generally indicates economic contraction. These guidelines vary by country, however.

If you would like to be the first to receive the Decision Analyst Economic Index each month, please contact Cristi Allen by email to get on the advanced-release list.

For additional information contact:
Cristi Allen
Publicity
Email: callen@decisionanalyst.com
Phone: 1.800.ANALYSIS (262.5974)
Address: 604 Avenue H East
Arlington, TX 76011

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