Research >> Economics
DJ-BTMU U.S. Business Barometer increased by 1.2%
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For the week ending July 7, 2012, the DJ-BTMU U.S. Business Barometer rose significantly by +1.2 percent from the prior week. Auto and Truck Production contributed to the increase in the barometer of the week. This increase is due to several auto makers’ decisions to keep plants open during the annual summer shutdown period to meet a demand and replenish inventories. Electric Output picked up sharply following a slight decrease in the previous week. Additionally, Chain Store Sales and MBA’s Purchase Index showed moderate increases.
On a year-over-year basis, the barometer increased by +1.4 percent, 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 barometer increased by +2.2 percent in 2011 at a somewhat slower pace compared to 2010.
The smoothed version of the barometer, which attempts to account for weekly volatility, increased by +0.3 percent from the previous week while its year-over-year growth rate increased by +1.5 percent. The smoothed barometer has been increasing since the week ending June 16, 2012, after its revision.
Posted: July 19, 2012 Thursday 10:00 AM