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DJ-BTMU U.S. Business Barometer increased 0.1%
For the week ending April 9, 2011, the DJ-BTMU U.S. Business Barometer increased by +0.1 percent on top of a jump of +0.5 percent in the prior week. The consumption side of the barometer showed mixed results in the latest week where an increase in box office receipts and inflation-adjusted chain store sales was offset by a large decline in mortgage applications. On the production side, all components save electronic output contributed nicely with weekly auto and truck production showing no sign of stress from Japan supply disruptions. That being said, Japan’s supply chain is not yet functioning at full capacity so it is just a matter of time before U.S. manufacturers run short of needed supplies. Auto manufacturers have furloughed some workers and cut hours of others in order to stretch production on existing supplies in the wake of the Japan earthquake that hit on March 11.
On a year-over-year basis, the barometer slowed a tad to +2.8 percent in the week ending April 9, 2011, which compares to an average -3.3 percent decline over the Great Recession (determined to have ended in June 2009 according to the NBER). After flat lining in 2006, and declining from 2007 through 2009, the barometer bounced back in 2010 to rise by +3.4 percent, which was the strongest increase since 1994 (+4.0%), but not so impressive when you compare it to an -8.0 percent drop in 2009.
Posted: April 21, 2011 Thursday 10:00 AM