Seasonal Adjustment

DEFINITION of 'Seasonal Adjustment'

A statistical technique designed to even out periodic swings in statistics or movements in supply and demand related to changing seasons. Seasonal adjustments provide a clearer view of nonseasonal changes in data that would otherwise be overshadowed by the seasonal differences.

BREAKING DOWN 'Seasonal Adjustment'

Seasonal adjustments are intended to smooth out aberrations in certain types of financial activity. For example, the sales of running shoes bought in the summer exceeds the amount bought in the winter. A seasonal adjustment is therefore made to obtain a clear picture of the general trend.

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RELATED FAQS
  1. When should I use seasonally adjusted data from the consumer price index (CPI)?

    Learn what seasonally adjusted data is, how it is determined and when it should be used to evaluate the information gathered ... Read Answer >>
  2. How does seasonality affect the financial services sector?

    Take a look at some of the ways that seasonal trend analysis can be applied to various financial services providers and the ... Read Answer >>
  3. Is the banking sector subject to any seasonal trends?

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