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Home | Press Room | Press Release Archives | Economic Index

For Immediate Release
April 5, 2010
Contact: Cristi Allen
callen@decisionanalyst.com
Phone: 817-640-6166

U.S. Economic Recovery Tentative—Decision Analyst’s
March Economic Index Sees No Change

Arlington, Texas—Decision Analyst’s U.S. Economic Index registered 95 in March 2010, the same as February. The Index has remained relatively flat for the past six months, suggesting that the economy is improving and will improve, but at a very slow rate. Since this Index tends to lead the U.S. economy by six to 12 months, it continues to predict a gradually improving economy during 2010. Below is the Index for the past three years.

“The good news is that the U.S. economy is gradually getting better. However, the recovery remains tentative and fragile. Long-term unemployment and under-employment remain massive national problems that will continue to exert downward pressure on the economic recovery,” said Jerry W. Thomas, President/CEO of Decision Analyst. “The economy continues to struggle with lack of credit and lack of confidence, but the continued uptrend in U.S. stock markets is helping. Much of the positive economic news is resulting from unprecedented assistance from the U.S. government and the Federal Reserve, and it remains to be seen if the economy can grow once the stimulus is diminished.

“Risks to the global financial system remain. Several European countries, the U.S., and Japan all face huge debt burdens, and China is a bubble waiting to pop,” said Thomas. “It is the risk of further financial crises that poses the greatest threat to the U.S. and the world economy.”

International Index

The table on the next page compares the U.S. Economic Index to Decision Analyst’s Economic Indices in other countries. Germany and Australia appear to be doing slightly better than the U.S. France, Spain, Argentina, and the United Kingdom appear to be doing comparatively worse than other countries.

Decision Analyst International Economic Indices

 
North America
Index
United States
95
Canada
93
Mexico*
89
Europe
Index
France
83
Germany*
99
Italy
91
Spain*
86
United Kingdom
88
South America
Index
Argentina*
86
Brazil
132
Australia/Asia
Index
Australia*
99
China*
137
India
122
 
* The Index numbers for Mexico, Germany, Spain, Australia, Argentina and China are a three-month moving average to smooth out month-to-month fluctuations. The reported Index number averages the current month with the two previous months.

 

Census Divisions

The New England division appears to be doing better than the rest of the U.S. The Pacific and South Atlantic divisions are comparatively weak (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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