Research >> Economics
DJ-BTMU U.S. Business Barometer increased by 0.1%
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For the week ending April 26 2014, the DJ-BTMU U.S. Business Barometer edged up by 0.1 percent following two consecutive weeks’ declines. Consumption index, driven by an increase of chain store sales rising by 1.6 percent, pushed up the barometer this week. MBA’s purchase index in consumption declined, yet it was more than offset by the increase in chain store sales. In production index, truck production rose by 8.2 percent, cancelling out the decrease from last week. Meanwhile, lumber production and steel production declined by 1.3 percent and 1.6 percent, respectively. Lumber production is on a downward trend since the beginning of this year.
On a year-over-year basis, the barometer showed a gain of 0.2 percent, which compares to an average -3.3 percent decline over the Great Recession (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 percent), but not so impressive when compared to an -8.0 percent drop in 2009. The rate of increase for the 2013 slowed to 0.7 percent following 1.5 percent in 2012.
The smoothed version of the barometer, which attempts to account for weekly volatility, was a flat reading after increasing for seven consecutive weeks. Its year-over-year growth rate was 0.4 percent.
Posted: May 8, 2014 Thursday 10:00 AM