The Gardner Business Index (GBI) moved higher in the first month of 2020 to close at 49.6. By comparison, a reading of exactly 50 would have implied no change in total business activity. Therefore, January’s number indicates that business conditions contracted only very slightly for the month. January’s reading is encouraging for several reasons. Foremost, it ends a five-month trend of accelerating contraction in activity. Secondly, it represents the highest Index reading since June of 2019. Index readings above 50 indicate expanding activity while values below 50 indicate contracting activity. The further away a reading is from 50, the greater the magnitude of activity change.
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