Dow Jones Today Economic Sentiment Indicator Drops In September 2010

Following 4 months of modest but steady good points

, 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 whereas the Indicator has historically declined in September, there are signs that the financial recovery is faltering with a sharp enhance in damaging financial tales over the past seven days of the month.

"It may very well be the decline merely reflects a seasonal effect as a result of on stability over the past twenty years the ESI has tended to dip during September," Dow Jones Newswires "Cash Talks" Columnist Alen Mattich said.

Mattich factors out, however, "A weekly evaluation of the ESI showed significantly sharp erosion in the Indicator during the past seven days. Were this trend to continue over the coming weeks, it will signal a sharply growing threat of a double dip for the U.S. economy."

The ESI is set by in-depth evaluation of national news protection throughout 15 each day newspapers.

Among the adverse tales within the media throughout the month were an article charting the price to the Boston economic system of the Pink Sox failing to make the playoffs; shortcomings in Obama's flagship mortgage-reduction program; the financial issues of the Washington Nationwide Opera; and protection of census figures that show extra unmarried couples live together maybe because of harsher economic conditions.

The Dow Jones Economic Sentiment Indicator goals to predict the well being of the U.S. financial system by analyzing the coverage of 15 major daily newspapers within the U.S. Utilizing a proprietary algorithm and derived data expertise, the ESI examines every article in each of the newspapers for constructive and adverse sentiment about the economy. The indicator is calculated by means of Dow Jones Insight, a media monitoring and analysis tool. The know-how used for the ESI additionally powers Dow Jones Lexicon, a proprietary dictionary that enables traders and analysts to find out sentiment, frequency and different related complex patterns inside news to develop predictive trading strategies.

The ESI's again-testing to 1990 reveals that the ESI clearly highlighted the danger that the U.S. economic system was sliding into recession in 2001 and 2008 and suggests the indicator may help predict economic turning points as much as seven months in advance of different indicators.

Dow Jones Insight makes use of progressive textual content mining and analytic technologies to assist organizations hold knowledgeable about related points, news, conversations and traits emerging in mainstream, Net and social media. Dow Jones Insight's international content collection consists of more than 25,000 information and information sources in addition to blogs, message boards, and posts from YouTube and Twitter.

About Dow Jones Today

Dow Jones & Firm is a Information Corporation firm (Nasdaq: NWS, NWSA; ASX: NWS, NWSLV) and a number one supplier of worldwide information and enterprise information. Its principal products include The Wall Road Journal, Dow Jones Newswires, Dow Jones Factiva, Barron's and MarketWatch. Via its Local Media Group, Dow Jones operates group-primarily based newspapers and Internet sites. Dow Jones also offers news content material to tv and radio stations.

The Dow Jones Financial Sentiment Indicator is offered for analysis functions solely and Dow Jones makes no representation that the indicator is a definitive predictor of sentiment or the well being of the U.S. economy. This report doesn't in any approach reflect an opinion of Dow Jones regarding the U.S. economic system or the suitability of any investments.

by: marksxftha

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