Tag Archives: Dow Jones Economic Sentiment Index

Updates On Economic Indicators June 2011

Here is an update on various indicators that are supposed to predict and/or depict economic activity.  These indicators have been discussed in previous blog posts:

The June Chicago Fed National Activity Index (CFNAI)(pdf) updated as of June 23, 2011:

The Consumer Metrics Institute Contraction Watch:

The USA TODAY/IHS Global Insight Economic Outlook Index:

An excerpt from the June 22 Press Release, titled “Index forecasts stronger growth this fall” :

The June update of the USA TODAY/IHS Global Insight Economic Outlook Index shows real GDP growth, at a six-month annualized growth rate, remaining below 3% through the summer and then gaining strength in October and November with 3.3%-3.4% growth rates. Temporary automotive supply disruptions resulting from the Japan earthquake plus high energy and food prices are the main reasons for the slowdown. A return to stronger growth is expected in the fall as automotive supply levels return to normal, businesses increase equipment spending, export growth remains strong and employment slowly improves. The weak housing market and concerns about European debt remain drags on the recovery.

The ECRI WLI (Weekly Leading Index):

As of 6/17/11 the WLI was at 127.0 and the WLI, Gr. was at 2.9%.  A chart of the growth rates of the Weekly Leading and Weekly Coincident Indexes:

The Dow Jones ESI (Economic Sentiment Indicator):

The Indicator as of May 31 was at 46.7, as seen below:

An excerpt from the May 31 Press release:

The depiction of the economy in U.S. newspapers continued to be more negative than positive in May, lengthening a long-term trend held since November 2007. In May, the Dow Jones Economic Sentiment Indicator hit 46.6, unchanged since April and more than 3 points away from the positive side of the 100-point scale.

The Aruoba-Diebold-Scotti Business Conditions (ADS) Index:

Here is the latest chart, depicting 6-18-09 to 6-18-11:

The Conference Board Leading (LEI) and Coincident (CEI) Economic Indexes:

As per the June 17 release, the LEI was at 114.7 and the CEI was at 102.9 in May.

An excerpt from the June 17 Press Release:

Says Ataman Ozyildirim, economist at The Conference Board: “The U.S. LEI rebounded in May and resumed its upward trend with a majority of the components supporting this gain. The Coincident Economic Index, a monthly measure of current economic conditions, continued to increase slowly but steadily. Overall, despite short-term volatility, the composite indexes still point to expanding economic activity in the coming months.”

Says Ken Goldstein, economist at The Conference Board: “Modest economic growth is being buffeted by some strong headwinds, including high gas and food prices and a soft housing market. The economy will likely continue to grow through the summer and fall, however it will be choppy.”

_________

I post various indicators and indices because I believe they should be carefully monitored.  However, as those familiar with this blog are aware, I do not necessarily agree with what they depict or imply.

_____

The Special Note summarizes my overall thoughts about our economic situation

SPX at 1268.45 as this post is written

Updates On Economic Indicators May 2011

Here is an update on various indicators that are supposed to predict and/or depict economic activity.  These indicators have been discussed in previous blog posts:

The May Chicago Fed National Activity Index (CFNAI)(pdf) updated as of May 23, 2011:

The Consumer Metrics Institute Contraction Watch:

The USA TODAY/IHS Global Insight Economic Outlook Index:

An excerpt from the March 23 Press Release, titled “Economic index forecasts stronger growth” :

“The March update of the USA TODAY/IHS Global Insight Economic Outlook Index shows real GDP growth, at a six-month annualized growth rate, increasing to 3.7% to 3.8% during the summer months. Gains in manufacturing, capital spending and exports are fueling the growth. Consumer spending and employment are expected to continue improving, though at a moderate pace.”

The ECRI WLI (Weekly Leading Index):

As of 5/13/11 the WLI was at 128.7 and the WLI, Gr. was at 5.3%.  A chart of the growth rates of the Weekly Leading and Weekly Coincident Indexes:

The Dow Jones ESI (Economic Sentiment Indicator):

The Indicator as of May 2 was at 46.6, as seen below:

The Aruoba-Diebold-Scotti Business Conditions (ADS) Index:

Here is the latest chart, depicting 5-14-09 to 5-14-11:

The Conference Board Leading (LEI) and Coincident (CEI) Economic Indexes:

As per the May 19 release, the LEI was at 114.0 and the CEI was at 102.8 in April.

An excerpt from the May 19 Press Release:

Says Ataman Ozyildirim, economist at The Conference Board: “The U.S. LEI has been rising since March 2009, with only a brief one-month interruption in June 2010, and now, in April 2011. The U.S. CEI, a monthly measure of current economic conditions, continued to increase, supported by improving employment figures. Overall, the composite indexes still point to strengthening business conditions in the near term, although the path may be uneven.”

_________

I post various indicators and indices because I believe they should be carefully monitored.  However, as those familiar with this blog are aware, I do not necessarily agree with what they depict or imply.

The Special Note summarizes my overall thoughts about our economic situation

SPX at 1316.28 as this post is written

Updates On Economic Indicators April 2011

Here is an update on various indicators that are supposed to predict and/or depict economic activity:

The April Chicago Fed National Activity Index (CFNAI)(pdf) updated as of April 28, 2011:

CFNAI graph

The Consumer Metrics Institute Contraction Watch:

The USA TODAY/IHS Global Insight Economic Outlook Index:

An excerpt from the March 23 Press Release, titled “Economic index forecasts stronger growth” :

“The March update of the USA TODAY/IHS Global Insight Economic Outlook Index shows real GDP growth, at a six-month annualized growth rate, increasing to 3.7% to 3.8% during the summer months. Gains in manufacturing, capital spending and exports are fueling the growth. Consumer spending and employment are expected to continue improving, though at a moderate pace.”

The ECRI WLI (Weekly Leading Index):

As of 4/15/11 the WLI was at 131.6 and the WLI, Gr. was at 7.7%.  A chart of the growth rates of the Weekly Leading and Weekly Coincident Indexes:

The Dow Jones ESI (Economic Sentiment Indicator):

The Indicator as of March 31 was at 43.2, as seen below:

An excerpt from the March 31 Press Release:

“Weighted down by concerns about future consumer spending, the Dow Jones Economic Sentiment Indicator dropped 3.3 points to 43.2 in March. This is indicator’s lowest point since September 2010 and its sharpest drop since the autumn of 2008 when the global financial markets were collapsing.”

The Aruoba-Diebold-Scotti Business Conditions (ADS) Index:

Here is the latest chart, depicting 4-23-09 to 4-23-11:

The Conference Board Leading (LEI) and Coincident (CEI) Economic Indexes:

As per the April 21 release, the LEI was at 114.1 and the CEI was at 102.9 in March.

An excerpt from the April 21, 2011 Press Release:

Says Ataman Ozyildirim, economist at The Conference Board: “The U.S. LEI continued to increase in March, pointing to strengthening business conditions in the near term. The March increase was led by the interest rate spread and housing permits components, while consumer expectations dropped. The U.S. CEI, a monthly measure of current economic conditions, also continued to rise, led by gains in industrial production and employment.”

_________

I post various indicators and indices because I believe they should be carefully monitored.  However, as those familiar with this blog are aware, I do not necessarily agree with what they depict or imply.

The Special Note summarizes my overall thoughts about our economic situation

SPX at 1360.36 as this post is written

Updates On Economic Indicators March 2011

Here is an update on various indicators that are supposed to predict and/or depict economic activity.  (Past updates of these indicators, as well as previous posts discussing the individual indicators, can be found under “Economic Indicators“) :

The March Chicago Fed National Activity Index (CFNAI)(pdf) updated as of March 21, 2011:

The Consumer Metrics Institute Contraction Watch:

The USA TODAY/IHS Global Insight Economic Outlook Index:

An excerpt from the February 25 Press Release, titled “Economic index forecasts stronger growth” :

“The February update of the USA TODAY/IHS Global Insight Economic Outlook Index shows real GDP growth, at a six-month annualized growth rate, increasing to 3.6% in March through June and then slowing slightly to 3.4% in July. Improved consumer and business confidence and the new tax legislation are expected to help fuel growth. But continued high unemployment, a still-weak housing sector and tight credit conditions will keep growth below 4% this year.”

The ECRI WLI (Weekly Leading Index):

As of 3/11/11 the WLI was at 130.4 and the WLI, Gr. was at 7.1%.  A chart of the growth rates of the Weekly Leading and Weekly Coincident Indexes:

The Dow Jones ESI (Economic Sentiment Indicator):

The Indicator as of February 28 was at 46.5, as seen below:

The Aruoba-Diebold-Scotti Business Conditions (ADS) Index:

Here is the latest chart, depicting 3-12-09 to 3-12-11:

The Conference Board Leading (LEI) and Coincident (CEI) Economic Indexes:

As per the March 17 release, the LEI was at 113.4 and the CEI was at 102.5 in February.

An excerpt from the March 17, 2011 Press Release:

Says Ataman Ozyildirim, economist at The Conference Board: “With February’s large gain, the U.S. LEI returned to the strengthening upward trend that began last September. The LEI is pointing to an economic expansion that should gain more momentum in the coming months. In February, improvements in labor markets, financial components, and consumer expectations more than offset falling housing permits.”

_________

I post various indicators and indices because I believe they should be carefully monitored.  However, as those familiar with this blog are aware, I do not necessarily agree with what they depict or imply.

The Special Note summarizes my overall thoughts about our economic situation

SPX at 1298.38 as this post is written

Updates On Economic Indicators February 2011

Here is an update on various indicators that are supposed to predict and/or depict economic activity.  (Past updates of these indicators, as well as previous posts discussing the individual indicators, can be found under “Economic Indicators“) :

The February Chicago Fed National Activity Index (CFNAI)(pdf) updated as of February 24, 2011:

The Consumer Metrics Institute Contraction Watch:

The USA TODAY/IHS Global Insight Economic Outlook Index:

An excerpt from the January 24 Release, titled “Economic index forecasts stronger growth”  :

“The January update of the USA TODAY/IHS Global Insight Economic Outlook Index shows real GDP growth, at a six-month annualized growth rate, gaining momentum this year. The index forecasts a growth rate of 3.7% in March and April, up from 2.1% in September. Improved consumer and business confidence and the new tax legislation are expected to help fuel growth. But continued high unemployment, a still-weak housing sector and tight credit conditions will keep growth below 4% this year.”

The ECRI WLI (Weekly Leading Index):

As of 2/11/11 the WLI was at 129.5 and the WLI, Gr. was at 4.9%.  A chart of the growth rates of the Weekly Leading and Weekly Coincident Indexes:

The Dow Jones ESI (Economic Sentiment Indicator):

The Indicator as of January 31 was at 46.9, as seen below:

An excerpt from the January 31 Press Release:

“With a gain of just under one point in January, the Dow Jones Economic Sentiment Indicator signaled that the U.S. economy is slowly pulling itself out of the recession. The ESI edged up from 46.1 in December to 46.9 in January, consolidating a positive 2.2 point gain in December.

“Fears of a double dip recession have fallen off the radar, but reporting about the economy is still short of the optimism we ought to be seeing at this stage, were this a normal expansion. This muted sentiment mirrors the lackluster trend in employment growth,” said Dow Jones Newswires “Money Talks” columnist Alen Mattich.”

The Aruoba-Diebold-Scotti Business Conditions (ADS) Index:

Here is the latest chart, depicting 2-19-09 to 2-19-11:

The Conference Board Leading (LEI) and Coincident (CEI) Economic Indexes:

As per the February 17 release, the LEI was at 112.3 and the CEI was at 102.1 in January.

An excerpt from the February 17, 2011 Press Release:

“Says Ken Goldstein, economist at The Conference Board:  “The economy gained some momentum in late fall, and the latest data suggest that trend will continue.  The cumulative change in the U.S. LEI over the last six months is a sharp 3.0 percent, signaling continued expansion.”

_________

I post various indicators and indices because I believe they should be carefully monitored.  However, as those familiar with this blog are aware, I do not necessarily agree with what they depict or imply.

A Special Note concerning our economic situation is found here

SPX at 1306.10 as this post is written

Updates On Economic Indicators January 2011

Here is an update on various indicators that are supposed to predict and/or depict economic activity.  These indicators have been discussed in previous blog posts:

The January Chicago Fed National Activity Index (CFNAI)(pdf) updated as of January 27, 2011:

The Consumer Metrics Institute Contraction Watch:

The USA TODAY/IHS Global Insight Economic Outlook Index:

An excerpt from the January 24 Release, titled “Economic index forecasts stronger growth”  :

“The January update of the USA TODAY/IHS Global Insight Economic Outlook Index shows real GDP growth, at a six-month annualized growth rate, gaining momentum this year. The index forecasts a growth rate of 3.7% in March and April, up from 2.1% in September. Improved consumer and business confidence and the new tax legislation are expected to help fuel growth. But continued high unemployment, a still-weak housing sector and tight credit conditions will keep growth below 4% this year.”

The ECRI WLI (Weekly Leading Index):

As of 1/14/11 the WLI was at 128.9 and the WLI, Gr. was at 4.1%.  A chart of the growth rates of the Weekly Leading and Weekly Coincident Indexes:

The Dow Jones ESI (Economic Sentiment Indicator):

The Indicator as of January 3 was at 46.1, as seen below:

From the January 3 Press Release, “Driven by a wide range of upbeat grassroots economic news, the Dow Jones Economic Sentiment Indicator (ESI) jumped 2.2 points to 46.1 in December, breaking out of its previous range and indicating the economy could be picking up momentum at the start of 2011.”

The Aruoba-Diebold-Scotti Business Conditions (ADS) Index:

Here is the latest chart, depicting 1-22-09 to 1-22-11:

The Conference Board Leading (LEI) and Coincident (CEI) Economic Indexes:

As per the January 20 release, the LEI was at 112.4 and the CEI was at 101.9 in December.

An excerpt from the January 20, 2011 Press Release:

“Says Ataman Ozyildirim, economist at The Conference Board:  ‘While the LEI points to an economic expansion that is gaining further traction, its components still suggest the expansion path may be uneven.  December’s gain was led by housing permits, the interest rate spread, initial claims for unemployment insurance and consumer expectations.  The large increases in December and November show that, after a brief pause in the second quarter of 2010, the LEI is resuming the upward trend that began in March 2009.'”

_________

I post various indicators and indices because I believe they should be carefully monitored.  However, as those familiar with this blog are aware, I do not necessarily agree with what they depict or imply.

A Special Note concerning our economic situation is found here

SPX at 1299.54 as this post is written

Updates On Economic Indicators December 2010

Here is an update on various indicators that are supposed to predict and/or depict economic activity.  These indicators have been discussed in previous blog posts:

The December Chicago Fed National Activity Index (CFNAI)(pdf) updated as of December 20, 2010:

The Consumer Metrics Institute Contraction Watch:

The USA TODAY/IHS Global Insight Economic Outlook Index:

An excerpt from the November 24 Release :

“The November update of the USA TODAY/IHS Global Insight Economic Outlook Index shows real GDP growth, at a six-month annualized growth rate, stabilizing at 2.2% in December through March and 2.1% in April. Weak housing and employment combined with high debt and tight credit continue to impede growth.”

The ECRI WLI (Weekly Leading Index):

As of 12/10/10 the WLI was at 127.4 and the WLI, Gr. was at -.1%.  A chart of the growth rates of the Weekly Leading and Weekly Coincident Indexes:

The Dow Jones ESI (Economic Sentiment Indicator):

The Indicator as of November 30 was at 43.9, as seen below:

An excerpt from the November 30 News Release:

““The ESI signals that the economy is in a holding pattern,” Dow Jones Newswires “Money Talks” Columnist Alen Mattich said. “If it had risen sharply, confirming October’s strong rise, then it would have been a very positive sign. Instead we are seeing an economy still poised between modest growth and a slipping back.”

The Aruoba-Diebold-Scotti Business Conditions (ADS) Index:

Here is the latest chart, depicting 12-11-08 to 12-11-10:

The Conference Board Leading (LEI) and Coincident (CEI) Economic Indexes:

As per the December 17 release, the LEI was at 112.4 and the CEI was at 101.7 in November.

An excerpt from the December 17, 2010 Press Release:

“Says Ataman Ozyildirim, economist at The Conference Board: “November’s sharp increase in the LEI, the fifth consecutive gain, is an early sign that the expansion is gaining momentum and spreading.  Nearly all components rose in November.  Continuing strength in financial indicators is now joined by gains in manufacturing and consumer expectations, but housing remains weak.”

_________

I post various indicators and indices because I believe they should be carefully monitored.  However, as those familiar with this blog are aware, I do not necessarily agree with what they depict or imply.

A Special Note concerning our economic situation is found here

SPX at 1254.60 as this post is written

Updates On Economic Indicators November 2010

Here is an update on various indicators that are supposed to predict and/or depict economic activity.  These indicators have been discussed in previous blog posts:

The November Chicago Fed National Activity Index (CFNAI)(pdf) updated as of November 22, 2010:

The Consumer Metrics Institute Contraction Watch:

The USA TODAY/IHS Global Insight Economic Outlook Index:

An excerpt from the October 27 Release, titled “Latest economic index forecasts weak growth through first quarter” :

“The October update of the USA TODAY/IHS Global Insight Economic Outlook Index shows real GDP growth, at a six-month annualized growth rate, slowing to 1.4% in October and then increasing to 2.0% in February and March, as weak housing and employment conditions continue to impede growth.”

The ECRI WLI (Weekly Leading Index):

As of 11/12/10 the WLI was at 124.3 and the WLI, Gr. was at -4.5%.  A chart of the growth rates of the Weekly Leading and Weekly Coincident Indexes:

The Dow Jones ESI (Economic Sentiment Indicator):

The Indicator as of November 1 was at 43.9, as seen below:

An excerpt from the November 1 release:

“The Dow Jones Economic Indicator (ESI) jumped 3.2  points to 43.9  in October, an unusually strong gain. In back-testing through 1990, election year Octobers averaged a 0.3 point rise. The ESI is now at its highest point since December 2007.

October’s gain, however, was preceded by a 2.5 point drop in September. The ESI’s turbulence implies that the economy is teetering between a slow climb up and a relapse.

“The Dow Jones ESI rebounded in October from its dip the previous month, resuming a modest upward trend seen during much of the year,” Dow Jones Newswires “Money Talks” Columnist Alen Mattich said. “The indicator, however, is still well below levels seen during normal expansions. The October number was not particularly boosted by press coverage of impending quantitative easing from the Federal Reserve or from any one off factors, supporting the view that it reflects self sustaining growth in the economy.”

The Aruoba-Diebold-Scotti Business Conditions (ADS) Index:

Here is the latest chart, depicting 11-13-08 to 11-13-10:

The Conference Board Leading (LEI) and Coincident (CEI) Economic Indexes:

As per the November 18 release, the LEI was at 111.3 and the CEI was at 101.5 in October.

An excerpt from the November 18, 2010 Press Release:

“Says Ken Goldstein, economist at The Conference Board: “The economy is slow, but latest data on the U.S. LEI suggest that change may be around the corner. Expect modest holiday sales, driven by steep discounting. But following a post-holiday lull, the indicators are suggesting a mild pickup this spring.”

_________

I post various indicators and indices because I believe they should be carefully monitored.  However, as those familiar with this blog are aware, I do not necessarily agree with what they depict or imply.

A Special Note concerning our economic situation is found here

SPX at 1197.84 as this post is written

Updates On Economic Indicators October 2010

Here is an update on various indicators that are supposed to predict and/or depict economic activity.  These indicators have been discussed in previous blog posts:

The October Chicago Fed National Activity Index (CFNAI)(pdf) updated as of October 25, 2010:

The Consumer Metrics Institute Contraction Watch:

The USA TODAY/IHS Global Insight Economic Outlook Index:

An excerpt from the October 28 Release, titled “Latest economic index forecasts weak growth through first quarter” :

“The October update of the USA TODAY/IHS Global Insight Economic Outlook Index shows real GDP growth, at a six-month annualized growth rate, slowing to 1.4% in October and then increasing to 2.0% in February and March, as weak housing and employment conditions continue to impede growth.”

The ECRI WLI (Weekly Leading Index):

As of 10/15/10 the WLI was at 122.1 and the WLI, Gr. was at -6.8%.  A chart of the growth rates of the Weekly Leading and Weekly Coincident Indexes:

The Dow Jones ESI (Economic Sentiment Indicator):

The Indicator as of September 30 was at 40.7, as seen below:

An excerpt from the September 30 release:

“Following five months of modest but steady gains, the Dow Jones Economic Indicator (ESI) fell to 40.7 in September, down from 43.2 in August and its largest one-month drop since October 2008.  And while the Indicator has historically declined in September, there are signs that the economic recovery is faltering with a sharp increase in negative economic stories during the last seven days of the month.”

The Aruoba-Diebold-Scotti Business Conditions (ADS) Index:

Here is the latest chart, updated through 10-23-10:

The Conference Board Leading (LEI) and Coincident (CEI) Economic Indexes:

As per the October 21 release, the LEI was at 110.4 and the CEI was at 101.4 in September.

An excerpt from the October 21, 2010 Press Release:

“Says Ken Goldstein, economist at The Conference Board:  “More than a year after the recession officially ended, the economy is slow and has no forward momentum.  The LEI suggests little change in economic conditions through the holidays or the early months of 2011.”

_________

I post various indicators and indices because I believe they should be carefully monitored.  However, as those familiar with this blog are aware, I do not necessarily agree with what they depict or imply.

A Special Note concerning our economic situation is found here

SPX at 1183.78 as this post is written


Updates On Economic Indicators September 2010

Here is an update on various indicators that are supposed to predict and/or depict economic activity.  These indicators have been discussed in previous blog posts:

The September Chicago Fed National Activity Index (CFNAI)(pdf) updated as of September 27, 2010:

The Consumer Metrics Institute Contraction Watch:

The USA TODAY/IHS Global Insight Economic Outlook Index:

An excerpt from August 31, 2010:

“The August update of the USA TODAY/IHS Global Insight Economic Outlook Index shows real GDP growth, at a six-month annualized growth rate, slowing to 1.3% in November through January. The end of government stimulus spending and inventory buildup combined with continuing high unemployment, a weak housing market, tight credit and high debt are behind the slowdown.”

The ECRI WLI (Weekly Leading Index):

As of 9/17/10 the WLI was at 122.2 and the WLI, Gr. was at -8.7%.  A chart of the growth rates of the Weekly Leading and Weekly Coincident Indexes:

The Dow Jones ESI (Economic Sentiment Indicator):

The Indicator as of August 31 was at 43.2, as seen below:

An excerpt from the August 31 Press Release:

“The ESI’s stability during recent months belies some of the recent weakness seen in other sentiment surveys and suggests that the underlying momentum of the U.S. economy, including employment, remains positive,” Dow Jones Newswires “Money Talks” Columnist Alen Mattich said. “However, the ESI remains well below the 50-plus levels that characterize normal expansions. This relative weakness suggests it would take little to push the economy back into recessionary conditions.”

The ESI is determined using an economic sentiment analysis algorithm to review news coverage in 15 daily newspapers across the U.S.”

The Aruoba-Diebold-Scotti Business Conditions (ADS) Index:

Here is the latest chart, updated through 9-18-10:

The Conference Board Leading (LEI) and Coincident (CEI) Economic Indexes:

As per the September 23 release, the LEI was at 110.2 and the CEI was at 101.3 in August.

An excerpt from the August 23, 2010 Press Release:

“Says Ken Goldstein, economist at The Conference Board:  “While the recession officially ended in June 2009, the recent pace of growth has been disappointingly slow, fueling concern that the economic recovery could fade and the U.S. could slide back into recession.  However, latest data from the U.S. LEI suggests little change in economic conditions over the next few months.  Expect more of the same – a weak economy with little forward momentum through 2010 and early 2011.”

“New Financial Conditions Index”

I wrote a post concerning this index on 3/10/10.  There is currently no updated value available.

_________

I post various indicators and indices because I believe they should be carefully monitored.  However, as those familiar with this blog are aware, I do not necessarily agree with what they depict or imply.

SPX at 1148.67 as this post is written