Entrex PCI Indicates Steadiness in American Business Revenue During Q2
PCI data shows a steady April and May while stock market values see erratic daily change.
CHICAGO, June 23, 2010 - Today the Private Company Index (PCI) announced its June report to show only a .2% increase in overall revenue performance from this cross-industry collection of $1M-$250M North American private companies. PCI analysts interpret that revenues have stabilized this quarter for the small to mid-sized private company sector, which is a change from the erratic income performance seen in Q1 of this year where month-over-month changes ranged from -3% to gains of 14% (for the overall index).
Analysts further pointed out that what is interesting about this May over April revenue data is that it occurred during a time when stock market indicators were presenting their usual degree of daily and monthly volatility. During these two months, daily stock values of the leading indexes (Dow Jones Industrial Average; Nasdaq Composite and the S&P Small Cap 600) ranged from -5% to +5%.
PCI CEO, Stephen H. Watkins, points out that “while this kind of daily change is common in the stock market, it doesn’t mean it’s easy for the investor to see when thinking about the value of their holdings or the worth of the company underlying the stock.”
The month of May ultimately showed the three stock indexes ending down between 7-8.5%. “But, what does that really mean?” Watkins asks. “Is there any actual bearing on the state of American business gleaned from this stock value metric? No. However, based on PCI data, we know companies were able to earn in May roughly what they saw in April.”
He continues, “This is why it’s important there are measures like the PCI that can assess the economy for doing business and seeing revenues. In the end it’s these performing companies that are going to be providing jobs, products to market, and the technological innovation we want to see in the overall U.S. economy.”
For more details about the June PCI report and five year PCI historical data, visit www.PrivateCompanyIndex.com.
ABOUT THE ENTREX PRIVATE COMPANY INDEX:
Sponsored and administered by Entrex, Inc. (www.entrex.net) the PCI is a proprietary benchmarking tool used to measure overall performance growth, and decline, in the private sector. It is recognized as the most authoritative source on sector performance by practitioners in the financial markets. www.PrivateCompanyIndex.com
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