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.

RELATED TERMS
  1. Seasonally Adjusted Annual Rate ...

    A rate adjustment used for economic or business data that attempts ...
  2. Seasoned Issue

    An issue of additional securities from an established company ...
  3. Seasonal Credit

    Any type of credit arrangement that permits corporate borrowers ...
  4. Seasonality

    A characteristic of a time series in which the data experiences ...
  5. Seasonal Industry

    A subset of companies that earn the majority of their income ...
  6. Seasoning

    The length of time a debt security has been publicly traded. ...
Related Articles
  1. Managing Wealth

    How to Think About Seasonality Trends

    Investors benefit when company research incorporates seasonality trends that predict relative strength and weakness throughout the calendar year.
  2. Trading

    Seasonal Trends In The Forex Market

    Uncover the predictable behaviors of some currencies throughout the calendar year.
  3. Trading

    The Seasonality Of The U.S. Dollar

    The long-term history of the U.S. dollar suggests that it is often stronger earlier in the year.
  4. Personal Finance

    Shoulder Season: Your Ticket To The Perfect Vacation

    Traveling during the sweet spot between high season and off season can save you money and stress.
  5. Markets

    The Cheapest Times To Fly To Australia

    The time you go and how you book are the keys.
  6. Investing

    How to Start a Seasonal Business

    Starting a seasonal small business isn't as hard as you think. With the right planning, you can have a successful business that operates seasonally.
  7. Trading

    Consider The Season On Trading Day

    Calendar and clock bias, better known as seasonality, is a frequently misunderstood concept that exerts a huge influence on the ticker tape.
  8. Markets

    The Alphabet Soup Of Stocks

    Are the countless stock categories leaving you puzzled? Here we help you sort through the confusion.
  9. Managing Wealth

    Best Times to Travel to the Philippines

    Although the Filipino archipelago is pretty divine, you don't want your holiday washed out by the rainy season. Here's a handy calendar listing the ideal months to visit.
  10. Managing Wealth

    How to Use Earnings Season to Make Better Decisions

    Earnings season reflects the state of the stock market, but also demonstrates how the overall economy is performing.
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?

    Explore the unexpected seasonal trends that can be discerned regarding the banking industry and the financial services sector ... Read Answer >>
  4. What seasonal trends exist in the metals and mining sector?

    Discover the seasonal tendencies that affect the metals and mining sector, especially gold prices as represented in both ... Read Answer >>
  5. Is the retail sector also affected by seasonal factors?

    Find out how the retail industry is affected by seasonal patterns in consumer tastes, especially for companies that tailor ... Read Answer >>
  6. To what extent do seasonal factors influence the utilities sector?

    Examine the effects of seasonal patterns on the utilities sector, and learn how the effects vary between demand for electricity, ... Read Answer >>
Hot Definitions
  1. Glass-Steagall Act

    An act the U.S. Congress passed in 1933 as the Banking Act, which prohibited commercial banks from participating in the investment ...
  2. Quantitative Trading

    Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify ...
  3. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  4. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  5. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  6. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
Trading Center