Research >> Economics
DJ-BTMU U.S. Business Barometer down 0.1%
For the week ending August 28, 2010, the DJ-BTMU U.S. Business Barometer fell -0.1 percent compared to a flat reading in the prior week. August lost ground compared to a strong jump in July, which can be largely attributed to the auto sector where motor vehicle assemblies and auto jobs popped up in July when automakers skipped the typical period of factory shutdowns for model changeovers. This was reflected in various July economic indicators including higher industrial production, lower initial jobless claims, and higher employment in the auto sector. Unfortunately, as the barometer shows, that strength was overstated by seasonal adjustment factors that were too kind and have given way to a reversal in the August data. Collapsing the data shows that the U.S. economy has slowed in the third quarter, supporting the belief that the chance of slipping back into recession has risen, although the level of the barometer suggests nothing more than slower economic growth is in store.
Posted: September 9, 2010 Thursday 10:00 AM