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Home | Press Room | Press Release Archives | Economic Index

For Immediate Release October 8, 2008
Contact: Cristi Allen
callen@decisionanalyst.com
Phone: 817-640-6166

U.S. Economy Continues In Recession, But Appears To Be Building A Base For Recovery

Arlington, Texas (October 8, 2008)— Decision Analyst’s U.S. Economic Index has remained very weak for the past six months at recessionary levels, but the trend is no longer downward. The fact that the Economic Index has been essentially flat for past six months suggests that the U.S. economy might be building a base for an upturn, despite the financial and banking panic.

“The Economic Index has remained stable for six months at a recession level, but the fact that the downtrend in the Index has leveled out suggests that the economy may be approaching a turning point. Now, of course, the financial panic might undermine the U.S. economy and drive it lower, but assuming some stability to the credit markets can be restored, economic activity might start trending up sooner than most expect,” said Jerry W. Thomas, President/CEO of Decision Analyst. “The huge declines in the prices of oil and most commodities will soon start improving corporate profitability, and this will serve as a stimulus to the whole U.S. economy. Inflation remains a great threat to future economic growth, however.” The negative factors in the September Economic Index were weak job availability, lack of job security for those who are employed, waning “consumer purchase intent” for major purchases, and pessimism about the stock market.

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 in the last 10 days 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 near or below 100 generally indicates economic contraction. These guidelines vary by country, however.

About Decision Analyst

Decision Analyst (www.decisionanalyst.com) is a leading global marketing research and marketing consulting firm specializing in advertising testing, strategy research, new product development, and advanced modeling for marketing decision optimization. The 30-year-old firm delivers competitive advantage to clients throughout the world in the consumer packaged goods, telecommunications, retail, technology, medical and pharmaceutical industries. In addition, Decision Analyst owns and operates the American Consumer Opinion® Online panel, one of the largest consumer opinion panels in the world—with more than 7 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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