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For Immediate Release November 6, 2008
Contact: Cristi Allen
callen@decisionanalyst.com
Phone: 817-640-6166

Arlington, Texas (November 6, 2008)— Decision Analyst’s U.S. Economic Index held steady during the month of October at 89, a level unchanged for seven months, despite the on-going credit crisis, record foreclosures, layoffs, and bank failures.

According to Jerry W. Thomas, President/CEO of Decision Analyst, The relative strength of the Decision Analyst Economic Index in October (‘strength’ because it did not crash) rests upon several factors:

• Rising expectations among consumers that stocks will increase in value during the next six months.
• Soaring optimism about cost-of-living reductions, related primarily to the decline in gasoline prices.
• Reasonable employment levels and consistent perceptions of job security, despite the news of corporate layoffs.
• Unused credit—most consumers report that they have plenty of room to expand credit card debt, if they wish.

“It’s clear from our survey data that October itself was a negative month for business activity in the U.S., as consumers and businesses were shell-shocked by the Financial Panic of 2008,” said Thomas. “However, the average man on the street in the U.S. appears to see glimmers of hope amidst the financial ruins and the media ‘crisis’ hype. If credit and financial markets begin to function normally, it’s very possible that the consumer could snap back relatively quickly—and minimize the downside risks of the present recession.”

A comparison of the U.S. Economic Index to the Economic Index in other countries provides some interesting perspective. Canada is doing better than the U.S. China and India appear to be doing comparatively well and better than the U.S. too. France, Spain, the UK, and Italy appear to relatively weak at the present.

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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