Seasonal adjustment

Seasonal adjustment or deseasonalization is a statistical method for removing the seasonal component of a time series. It is usually done when wanting to analyse the trend, and cyclical deviations from trend, of a time series independently of the seasonal components. Many economic phenomena have seasonal cycles, such as agricultural production, (crop yields fluctuate with the seasons) and consumer consumption (increased personal spending leading up to Christmas). It is necessary to adjust for this component in order to understand underlying trends in the economy, so official statistics are often adjusted to remove seasonal components.[1] Typically, seasonally adjusted data is reported for unemployment rates to reveal the underlying trends and cycles in labor markets.[2][3]

  1. ^ "Retail spending rise boosts hopes UK can avoid double-dip recession". The Guardian. 17 February 2012. Archived from the original on 8 March 2017.
  2. ^ "What is seasonal adjustment?". www.bls.gov. Archived from the original on 2011-12-20.
  3. ^ Cite error: The named reference :1 was invoked but never defined (see the help page).

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