Dow Jones Economic Sentiment Indicator Drops in September

Following four months of modest but steady gains, 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 while the Indicator has historically declined in September, there are signs that the economic recovery is faltering with a sharp increase in negative economic stories during the last seven days of the month. "It could be the decline merely reflects a seasonal effect because on balance over the past two decades the ESI has tended to dip during September," Dow Jones Newswires "Money Talks" Columnist Alen Mattich said. Mattich points out, however, "A weekly analysis of the ESI showed particularly sharp erosion in the Indicator during the past seven days. Were this trend to continue over the coming weeks, it would signal a sharply increasing risk of a double dip for the U.S. economy." The ESI is determined by in-depth analysis of national news coverage across 15 daily newspapers.