Research >> Economics
DJ-BTMU U.S. Business Barometer decreased by 0.7%
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For the week ending October 12th 2013, the DJ-BTMU U.S. Business Barometer dropped notably by 0.4 percent to 96.9, the lowest level since March 9, following a slight pickup in the prior week. The consumption side is still on a declining trend; chain store sales fell by 0.7 percent following a 0.2 percent decrease and MBA’s purchase index dropped significantly by 4.8 percent following declines for the last two weeks. On the production side, an increase in auto production was more than offset by decreases in truck production and electric output.
On a year-over-year basis, the barometer showed a decline of 0.1 percent, a negative sign for the first time since July 6, 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 flatlining 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 2012 slightly slowed to 1.4 percent following 2.2 percent in 2011.
The smoothed version of the barometer, which attempts to account for weekly volatility, declined by 0.1 percent for the fourth consecutive week. Its year-over-year growth rate was 0.3 percent.
Posted: October 24, 2013 Thursday 10:00 AM