Lakewood, CO, November 12, 2009 --(PR.com
)-- The Consumer Metrics Institute recently announced the completion of the first phase of their initiative to bring several leading economic indicators into the 21st Century. The multi-year program is designed to provide data about the future health of the economy in a manner that is at least an order of magnitude more timely than traditional indicators.
“Unfortunately we are now living in an age when critical economic stimuli can come and go before the traditional leading economic indicators have a chance to respond,” said Richard Davis, President of the Consumer Metrics Institute. “And things will only get worse as real-time business models, electronic shipments, virtual work places, and telemigrating work forces significantly compress the time frames in the business cycle. In fact, according to our analysis the leading edge of the current economic recovery probably passed six months before the historic indicators could react. That needs to change. Sadly, mid 20th Century economic indicators cannot possibly keep pace with the dynamic nature and electronically accelerated pace of 21st Century markets.”
The work just completed involved the finalization of a set of indexes that capture daily changes in the interests of consumers towards major discretionary purchases of durable goods and services. “Our daily sampling of consumer interest captures economic stimuli and trends well before their full impacts have flowed downstream to the operating statements of retailers, wholesalers and manufacturers,” Mr. Davis added. “This allows our 'Consumer Leading Indicators' to lead not only the economy, but generally lead the equity markets as well.”
The development of the 'Consumer Leading Indicators' was the first phase of a multi-year initiative to bring several of the traditional measures of economic health into sampling and reporting cycles that are more appropriate for the 21st Century. “Our vision is a set of consumer economy metrics that are as close to real-time as technology permits,” Mr. Davis said. “We've started with the demand side of the consumer economy and will be working over the next year on similar daily metrics for the supply side.”
Mr. Davis also pointed out that “We're not economists, and we don't pretend to know exactly what the data means -- that's for other people to figure out. All we know is that changes in the consumer economy can be sampled and identified well before the consequences hit corporate bottom lines. That's all we do: publish indexes that truly lead.”
This full press release including background information is available in Adobe® Acrobat® PDF format from http://www.consumerindexes.com/contacts#2009-11-10.