For Immediate Release November 2, 2007
Contact: Cristi Allen
callen@decisionanalyst.com
Phone: 817-640-6166

Arlington, Texas – Decision Analyst’s U.S. Economic Index dropped three points in October, a continuation of a year-long downtrend, as shown in the graph below.

“The average consumer in the U.S. is feeling the pinch of higher gasoline prices and higher energy costs, as well as rising food costs related to the competition of ethanol production with food production. At the same time, the growing number of home foreclosures reveals great economic stress on the lower end of the economic pecking order,” said Jerry W. Thomas, President/CEO of Decision Analyst. “While there are bright spots in the U.S. economy, the average consumer is experiencing strong headwinds and will be curtailing spending in coming months.”

Among the components that make up the Economic Index, the factors that appear to be driving the Economic Index downward are confidence in “stocks and mutual funds” (down 10 points), pessimism about the “prices paid for goods and services” (down 8 points), and consumer intent to buy cars and fund other major expenditures (down 8 points).

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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