The U.S. economy weakened in July, according to the Decision Analyst U.S. Economic Index. Based on a nationwide Internet survey conducted the last 10 days of the month, the economic index dropped in July to 108 from June's 111.

Decision Analyst U.S. Economic Index For The Past 13 Months

July 2001

109

Aug

113

Sept

109

Oct

112

Nov

112

Dec

112

Jan 2002

108

Feb

112

Mar

115

Apr

111

May

112

June

111

July

108

The uptick in consumer reports of increased business activity at their workplaces seen in June's economic index was completely erased in July, as consumers reported a drop in business activities at their workplaces. Also, consumer perceptions of future stock market prices continued to trend downward.

More troubling, the index indicates that consumers are beginning to see higher prices, and this might be reducing planned purchases. Consumer plans to buy high-ticket products within the next six months were flat.

"Consumers don't seem to be worried about their jobs, but they do see business activity slowing down," said Jerry W. Thomas, CEO and president of Decision Analyst. "Also, consumers' concerns about rising prices send a bad signal about possible inflation in the U.S. economy."

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