ctsats
made their 40th forecast (view all):
Probability
Answer
0% (0%)
Less than 62%
0% (0%)
More than or equal to 62% but less than 66%
4% (-2%)
More than or equal to 66% but less than 70%
96% (+2%)
More than or equal to 70% but less than 74%
0% (0%)
More than or equal to 74%
Why do you think you're right?

The Q2 OECD reading was again revised slightly higher at 70.4; and we now have Q3 readings from Japan, Korea, Chile, and Israel (data explorer). Korea logged an all-time high reading (70.0), while Japan repeated its all-time high reading from Q2 when it exceeded 80.0 for the first time. Here is the summary so far:


2024 Q1-2025 Q2-2025 Q3-2025 Oct
Australia 77.1 77.2 77.2 77.1 77.2
Canada 74.7 74.3 74.1 74.0 74.3
Chile 64.1 64.2 64.3 64.6
Colombia 62.9 64.1 64.4 64.4 64.4
Costa Rica 61.0 61.3 60.5 61.4
Israel 69.3 69.4 69.5 69.3
Japan 79.4 79.9 80.1 80.1 80.3
Korea 69.5 69.7 69.9 69.9 69.9
Mexico 63.9 63.6 63.3 63.1
New Zealand 78.5 77.5 77.2 76.9
UK 74.8 75.0 75.3 75.0
USA 71.9 71.9 71.8 71.6
OECD 70.2 70.3 70.3

(last update: Dec 4)

As I have explained in more detail below:

  • In the first half of 2025, we have been practically stable at ~70.35
  • In order to end up in the [66,70) bin, the average of both Q3 and Q4 should be lower than 69.55.

Furthermore:

  • Preliminary data for Q3 suggest a picture qualitatively similar to the previous quarters, i.e. no big departure from the ~70.3 region
  • Assuming a ~70.35 reading for Q3 too, then in order to end up in the [66,70) bin, the Q4 reading should be ~68.75, i.e. a QoQ decrease of 1.60. For comparison, the largest QoQ decrease in the middle of the GFC was by 1.0, from 65.8 in 2008-Q4 to 64.8 in 2009-Q1
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Why might you be wrong?

Black swans only, by now.

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