Business Conditions Index: BCI3Q2011

In my previous post, I did mention that if BCI continues to trend down for Q3, a double dip recession is likely in Malaysia.The BCI for Q3 has just been released by MIER. 


The gist of it: Business is still expanding but slower. 
The highlights:

1. Index down a marginal 9.5 points to 104.5 q-o-q. 
2. Sales, production and new export order has dropped q-o-q as predicted in Q2.
3. A further slump in sales and production is anticipated as we move into the final months of 2011.

Signs of 2008 economic recession approaching?

BCI for Q2 2011

The Cause & Effect of Business Cycle

Coming from a non-financial background, it took me a while to put together all the pieces of what I knew. This should be the simplest flowchart to explain the business cycle if you are not an investment banker. Let me know of any blunders.

Click to enlarge