Seasonal Adjustment

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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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