Research >> Economics
BTMU U.S. Business Barometer dropped by 0.2%
For the week ending January 30 2016, the BTMU U.S. Business Barometer dropped by 0.2 percent to 98.0, following a gain of 0.4 percent in the previous week. This week’s loss was primarily driven by poor performances on the production side. In fact, all production indexes except truck production recorded losses. For instance, electric output and coal production slumped by 8.8 and 8.1 percent, respectively. As to the demand side, MBA’s purchase index also contracted, although it was offset by gains in chain store sales, which bounced back by 1.3 percent, after falling by 0.4 percent in the prior week.
On a year-over-year basis, the barometer declined by 0.3 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, increased by 0.1 percent to 98.0. Its year-over-year growth rate was -0.3 percent.
Posted: February 11, 2016 Thursday 10:00 AM