Home | Press Room | Press Release Archives | Economic Index October 2010

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For Immediate Release
November 3, 2010
Contact: Cristi Allen
callen@decisionanalyst.com
Phone: 817-640-6166

Arlington, Texas—The Decision Analyst U.S. Economic Index registered 96 in October, the same level as the previous month. The trend is the U.S. Economic Index over the past 20 months has been gradual improvement. Since the U.S. Economic Index is a leading indicator (tending to foreshadow overall economic activity by six to 12 months), the Index is forecasting a slowly expanding U.S. economy for the balance of 2010 and most of 2011. Here is the U.S. Economic Index for the past three years.

“The U.S. economy continues its slow and steady growth,” according to Jerry W. Thomas, President/CEO of Decision Analyst. “The manufacturing sector has improved moderately, consumer spending is gradually rising, interest rates remain low, and major corporations are flush with cash. The U.S. economy should continue to muddle along and expand modestly. The biggest barriers to a a more rapid recovery are high unemployment, the continuing problems in the housing sector, the budget problems of all governmental entities, and the lack of credit for small businesses. Since small businesses are so important in creating new jobs, the lack of credit is retarding job creation. Without aggressive job creation, the economy will continue to limp forward on wobbly feet. If there are no major shocks to the system (such as another financial crisis or credit freeze), the U.S. economy should continue its recovery,” said Thomas. “The threat of a double-dip recession remains a concern, however, simply because economic growth is so fragile.”

International Index

The table on the next page compares the U.S. Economic Index to Decision Analyst’s Economic Indices in other countries. China has the highest Index score at 133, while France has the lowest score at 79. In Europe, Germany is the only European country with a score above 100. In North America the United States is doing the same as Canada. (See table on below.)

 

Census Divisions

Middle Atlantic, New England, West North Central and South Atlantic Divisions appear to be doing a little better than the rest of the country, while the Mountain Division is struggling. It has the weakest Index of all the U.S. Census Divisions. (See map below.)

 

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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