For Immediate Release June 1, 2007
Contact: Cristi Allen
callen@decisionanalyst.com
Phone: 817-640-6166

Arlington, Texas – Decision Analyst’s U.S. Economic Index fell to 105 in late May 2007, as shown in the graph below. The continued fall in the Economic Index stands in contrast to the Conference Board’s Consumer Confidence report for May, which indicated rising consumer confidence. The Economic Index is based on survey data from the last 10 days of May, and clearly shows that the downtrend in the U.S. economy continues, as indicated by consumer survey.

“Generally, Consumer Confidence and the Decision Analyst Economic Index travel in parallel,” said Jerry W. Thomas, president/CEO of Decision Analyst, “but the May divergence is interesting. It may be that the Conference Board’s data is from earlier in the month than our data, so it’s not really ‘apples to apples.’ Our survey data clearly indicate that the U.S. economy is continuing to weaken. Our models are signaling that the risks of recession are rising, and that the U.S. economy is teetering on the edge of contraction. The primary cause appears to be the increasing price of gasoline, which is negatively affecting consumer spending and consumer optimism.”

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 typically conducted between the 20th and 27th of each month. The Index is 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 concurrent economic surveys in Argentina, Australia, Brazil, Canada, Chile, China, Colombia, France, Germany, India, Italy, Mexico, Netherlands, Peru, Russian Federation, United Kingdom, 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 below 100 generally indicates economic contraction. These guidelines vary by country, however.

About Decision Analyst

Decision Analyst (www.decisionanalyst.com) is a leading marketing research and marketing consulting firm specializing in advertising testing, strategy research, new product development, and advanced modeling for marketing decision optimization. The firm delivers competitive advantage to clients throughout the world in the consumer packaged goods, telecommunications, retail, high technology, medical and pharmaceutical, utilities, and e-commerce industries. Decision Analyst operates American Consumer Opinion® online, one of the world’s largest Internet-based consumer-opinion panels, with more than seven million members.

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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