Seasonal Adjustments
Before most economic indicators are released, they are calculated to reflect seasonal adjustments. What are seasonal adjustments? The simplest way to answer this question is with an example. It's no surprise that consumers do a lot more shopping during the November/December holiday period than at other times of the year. In addition, when the Christmas shopping season is over, retail sales often slow in January and February. These seasonal shifts in consumer spending patterns are quite common. They're temporary changes that have nothing to do with the business cycle.
Let's look at another example. In the spring when schools close, the number of people getting jobs surges as students enter the workforce to earn money over ...
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