Economy Watchers Index down to second lowest reading ever in September

October 10, 2008
By Ken Worsley

On Wednesday, the Cabinet Office announced that the Economy Watchers Survey index for September fell 0.3 points from a month before, to 28.0 points. The index has now fallen for six straight months, and was the second-lowest score ever recorded, following the 27.2 reading from October 2001.

The Economy Watchers survey is measured as an index with a score above 50 indicating a positive view of the economy and a score below 50 representing a pessimistic overall view. The survey measures sentiment amongst taxi drivers, restaurant staff, barbers, and other service industry workers sensitive to frontline economic conditions. The index itself has been below the 50 mark for 18 consecutive months.

Once again, the highest score was seen in the sub-index of service industry workers, at 30.2 points. The service industry was the only sector with a score over 30, though this score fell 1.7 points from August. The real estate industry no longer claims the lowest score, having risen 4.1 points to 29.7. The lowest score came from the food industry, which checked in at 23.9 points, plunging 4.9 points from a month before.

Lower oil and gasoline prices, however, have helped bring about a sliver of good news: The outlook sub-index rose for the second month in a row from 32.0 in August to 32.1 in September.

Filed Under Cabinet Office, Economic Reports, Economy Watchers