Research >> Economics
DJ-BTMU U.S. Business Barometer dropped by 0.5%
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For the week ending January 11 2014, the DJ-BTMU U.S. Business Barometer decreased by 0.5 percent to 97.9, the lowest since December 7 2013, following declines for two weeks in a row. This week’s barometer was dragged by production side in which most of its components were down. After a rebound, auto and truck production dropped sharply again by over 10 to 20 percent. Lumber production and steel production also decreased by 5.3 percent and 1.2 percent, respectively. On consumption side, chain store sales dropped for two consecutive weeks but was offset by increases in MBA’s purchase index and railroad freight carloadings.
On a year-over-year basis, the barometer showed a gain of 1.2 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, decreased by 0.1 percent. Its year-over-year growth rate was 1.3 percent.
Posted: January 23, 2014 Thursday 10:00 AM