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Economic Sentiment Indicator, ESI, Moves Lower
  
Dow Jones Economic Sentiment Indicator
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August 1, 2013:  According to Kathleen Madigan1, On July 31, 2013, the July reading for the Dow Jones Economic Sentiment Indicator, ESI, fell from June's 6-year high.  ESI is reported on a scale of 0 to 100 with higher numbers represent increasingly positive sentiment.
"The Dow Jones Economic Sentiment Indicator fell to 51.4 in July, after it jumped to 54.9 in June, its highest reading since July 2007. The July reading is the lowest since April..

"Some of the decline may be a function of fiscal headwinds," says Alen Mattich, "Money Talks" columnist at Dow Jones Newswires, pointing to federal spending cuts known as the sequester. "But for now the indicator continues to point to steady expansion of both the economy and employment."

Graph of Dow Jones Economic Sentiment Indicator vs S&P500

 
The ESI is determined by a proprietary, in-depth sentiment analysis of national news coverage across 15 daily newspapers. 
"The economic sentiment indicator is designed to project the health of the U.S. economy by analyzing coverage of 15 major American newspapers, using a proprietary algorithm to look for positive and negative sentiment about the economy in every article. The ESI is reported on a scale of 0 to 100; higher numbers represent increasingly positive sentiment. Dow Jones selected the 15 newspapers used to compile the indicator because they include extensive original reporting on economic issues. They are also geographically diverse and represent eight of the 10 largest metropolitan areas in the U.S."


"The Dow Jones Economic Sentiment Indicator is provided for analysis purposes only and Dow Jones makes no representation that the indicator is a definitive predictor of sentiment or the health of the U.S. economy. This report doesn't in any way reflect an opinion of Dow Jones regarding the U.S. economy or the suitability of any investments."

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Note 1:  NASDAQ Article: ESI  July Economic Sentiment Index Falls Back from 6-Year High in June
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