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Sole Index of Private Company Revenue Performance Reflects an Expected Slump in the North American Sector
Chicago, IL – July 28, 2008 – The Entrex Private Company Index (PCI) saw a 1.9% slide during the month of June. This drop, following only a very slight increase gleaned from the results of May over April revenue data, marks a seasonal decline that the PCI portfolio also experienced in June 2007.
A review of other markets and economic indicators for the same period shows that this data was expected by authoritative predictive sources and also coincides with a downturn in capital market performance. In the public spectrum the DJIA, Nasdaq Composite Index and the S&P Small Cap 600 Index each ended June between 7.6 and 10.2% down from May’s end. Overall economic data for June, sourced from the Conference Board’s "U.S. Leading Economic Indicators" predicts a continued drop in the U.S. economy for the second month in a row.
Entrex CEO, Stephen H. Watkins, explains his views: “We look at PCI data in two ways. First, it’s a trend line for the current revenue performance of North American private companies that produce less than $250 million annually. It tells us how this sector of companies is being affected by what is happening now. Second, we closely watch historical PCI seasonal analysis to tell us if the current performance is unusual or unexpected.”
Watkins continues, “For example, our seasonal comparison chart (available online at www.privatecompanyindex.com) shows that this June over May downturn was experienced last year, followed by another dip in July. However, in both 2006 and 2007 August saw a dramatic spike in revenue performance that carried the overall Index to a year-end high point that was over 30% higher than its January start.”
About the Private Company Index:
Published monthly, the Entrex Private Company Index (PCI) is a proprietary benchmarking tool that measures revenue performance and activity in the sector of private companies with $250 million or less in annual revenue. The PCI is recognized by investment professionals and financial media as a leading and authoritative source on private company revenue performance. www.privatecompanyindex.com.
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