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For Immediate Release
June 4, 2010
Contact: Cristi Allen
callen@decisionanalyst.com
Phone: 817-640-6166

Arlington, Texas—The Decision Analyst Economic Index for the U.S. dropped three points in May, falling from 98 in April to 95 in May. Since the Decision Analyst Economic Index tends to foreshadow the U.S. economy by six to 12 months, it continues to indicate that the economy will be sluggish for the second half of 2010. Below is the U.S. Economic Index for the past three years.

“The April jump in the U.S. Economic Index indicates accelerating growth in the U.S. economy in coming months. As confidence builds, corporations will start to make capital investments and begin to consider staffing up to take advantage of the economic expansion,” said Jerry W. Thomas, President/ CEO of Decision Analyst. “Tight bank credit remains a major drag on the economy, but some banks are beginning to climb out of their foxholes and look around for loan opportunities. Banks, too, are affected by good economic news, so they are likely to become more positive and more receptive to loaning money as the recovery continues.

“Nevertheless, major structural risks remain: excessive debt, especially sovereign debt; threats of runaway inflation; high unemployment; the possibility that the credit markets might freeze up again; and the growing economic bubble in China,” said Thomas.

International Index

The table below compares the U.S. Economic Index to Decision Analyst’s Economic Indices in other countries. Germany appears to have a stronger economy than the U.S., while the rest of Europe appears to be comparatively weaker. France has the lowest score of all the countries reported.

 

Census Divisions

The New England Division’s Index is higher than the other census divisions. The East South Central, South Atlantic, and Mountain Divisions are comparatively weaker than the rest of the country (see map below).

 

Methodology

The Decision Analyst Economic Index is based on a monthly Internet survey of several thousand households balanced by gender, age, and geography. The online survey is conducted the last 10 days of each month. The Economic Index is calculated from nine different economic measurements using a sophisticated econometric model. The result is a snapshot of current economic activity in each country surveyed, as seen through the eyes of representative consumers living in the respective countries. Decision Analyst conducts its concurrent economic surveys each month in Argentina, Australia, Brazil, Canada, Chile, China, Colombia, France, Germany, India, Italy, Mexico, Netherlands, Peru, Russian Federation, Spain, United Kingdom, United States, 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 analytical consulting firm specializing in advertising testing, strategy research, new product development, and advanced modeling for marketing decision optimization. The 32-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 American Consumer Opinion® Online—one of the largest consumer opinion panels in the world—with more than eight million members.

For additional information contact:
Cristi Allen
Publicity
Email: callen@decisionanalyst.com
Phone: 1-800-ANALYSIS (262-5974) or 1-817-640-6166
Address: 604 Avenue H East
Arlington, TX 76011

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