SOURCE: Decision Analyst, Inc.

July 09, 2008 09:45 ET

The Decision Analyst Economic Index Remains Depressed

Inflation Is Looming Disaster

ARLINGTON, TX--(Marketwire - July 9, 2008) - Decision Analyst's U.S. Economic Index remained at its lowest level in a decade (88) in June. While the Economic Index has held steady at 88 for the past three months, the low Index number clearly indicates recession. The chart shows the U.S. Economic Index for the past 13 months.

"Over seventy percent of adults in the U.S. reported in June that prices of goods and services are rising rapidly. Lower income households are feeling even more pain, since gasoline and food represent a larger share of their household budgets," said Jerry W. Thomas, President/CEO of Decision Analyst. "The Bureau of Labor Statistics continues to understate the true inflation rate, and the Federal Reserve Board is depreciating the value of the dollar. The Federal Reserve must move quickly to raise interest rates and constrain the money supply, to avert an inflation catastrophe."

The largest negative factors in the June Economic Index were rapid inflation, "price expectations for stocks and mutual funds" and "future purchase intent" for durable goods.

Methodology: The Decision Analyst Economic Index is based on a monthly Internet survey of several thousand households balanced by gender, age, and geography. The survey is typically conducted in the last 10 days of each month. The Index is calculated from nine different economic measurements, using a sophisticated econometric model. The result is a snapshot of current U.S. economic activity, as seen through the eyes of representative consumers. Decision Analyst also conducts concurrent economic surveys in Argentina, Australia, Brazil, Canada, Chile, China, Colombia, France, Germany, India, Italy, Mexico, Netherlands, Peru, Russian Federation, United Kingdom, and Venezuela. Whenever the Decision Analyst Economic Index is greater than 110, it tends to signal an expanding economy. An Index value of 100 to 110 suggests a slow-growth economy, and near or below 100 generally indicates economic contraction. These guidelines vary by country, however.

About Decision Analyst

Decision Analyst (www.decisionanalyst.com) is a leading marketing research and marketing consulting firm specializing in advertising testing, strategy research, new product development, and advanced modeling for marketing decision optimization. The firm delivers competitive advantage to clients throughout the world in the consumer packaged goods, telecommunications, retail, high technology, medical and pharmaceutical, utilities, and e-commerce industries. Decision Analyst operates American Consumer Opinion® online, one of the world's largest Internet-based, consumer-opinion panels with more than seven million members.

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