Consumers continue to rise out of their financial slump, according to Dow Jones &3x0026; Company. The news corporation's Dow Jones Economic Sentiment Indicator (ESI) found that outlook rose to 35.5 in August 2009.
The positive movement of the data, based on the analysis of daily news coverage from 15 newspapers, marked the sixth consecutive month of increase since the ESI reached a record low of 22.2 in Nov 2008. Sentiments continue to show steady uptick from ratings in May (29), June (31.8), and July (33.6).
Alen Mattich, Dow Jones Newswires 'Money Talks' columnist, stated in a release that the upward trend, along with recent increases in other economic indicators, signals that the economy is moving into a period of recovery.
However, Mattich also noted that it is still a bit too early to herald in a recovery. "It will be months before the National Bureau of Economic Research determines the timing of the recession's trough and a return to growth. We continue to wait for the ESI to reach the upper 30s before anticipating an end to recession and thereafter for it to reach the upper 40s before sentiment suggests the recovery is sustainable."
The ESI references long-term trends rather than using a definitive score of 50 as the median between recession and recovery status. Substantial month over month gains indicate recovery, with increases of three points or more indicating significant improvements.