What Is a Seasonal Adjustment?

A seasonal adjustment is 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.

Fast Facts

  • Provide a clearer view of nonseasonal changes in data.
  • It is intended to smooth out aberrations in certain types of financial activity.
  • Made to obtain a clear picture of the general trend.

Seasonal Adjustment Explained

Seasonal adjustments are intended to smooth out aberrations in certain types of financial activity.

Real World Example of a Seasonal Adjustment

For example, the sales of running shoes bought in the summer exceed the amount bought in the winter. A seasonal adjustment is therefore made to obtain a clear picture of the general trend.