U.S. Economy Begins 2016 on Shaky Ground, According To Decision Analyst's Economic Index
Wednesday, February 10, 2016
Posted by: Christina Sacher Brown
U.S. Economy Begins 2016 On Shaky Ground,
According To Decision Analyst’s Economic Index
Arlington, Texas—The Decision Analyst U.S. Economic Index registered 107 in January 2016, a 3-point decline from December 2015. The U.S. Economic Index in January 2016 is the same as it was in January 2015, suggesting that 2016 will be another year of slow or no economic expansion. The Economic Index tends to lead U.S. economic activity by 6 to 12 months. Below is the past-10-year history of the U.S. Economic Index.
“The U.S. Economic Index increased sharply during the last three months of 2015 as the costs of oil, gasoline, and natural gas remained low. Reduced energy costs are, on balance, a stimulus to the U.S. consumer economy because households have more cash in hand to spend on groceries, eating out, clothing, and other consumer goods. Low energy costs lead to improved profitability in most energy-intensive industries, such as airlines, transportation and shipping, food processing, and many manufacturing companies,” said Jerry W. Thomas, President/CEO of Decision Analyst, a global marketing research and analytical consulting firm. “On the other side of the equation, the rising tide of debt of all types, the difficulty many small firms face in raising adequate amounts of money from the banking system in the U.S., and economic weakness in China, Russia, Brazil, and many emerging economies are exerting downward pressure on the U.S. economy. A U.S. recession in 2016 is not out of the question, but the odds continue to favor economic growth in the U.S. in 2016, albeit at a very modest pace.”