Thursday, May 07, 2009

An Adjustment for All Seasons

In another great post, expert analyst Ira Artman demonstrates very clearly that although seasonal adjustment is a very powerful tool for macroeconomic analysis, it’s not a perfect science.

Ira adjusts new and existing home sales data as well as pending home sales data using a rolling 12 month sum which serves to disclose the trend in each series while avoiding some of the volatility inherent in the seasonally adjusted data.