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.

  1. Seasonality

    A characteristic of a time series in which the data experiences ...
  2. Seasonally Adjusted Annual Rate ...

    A rate adjustment used for economic or business data that attempts ...
  3. Seasonal Credit

    Any type of credit arrangement that permits corporate borrowers ...
  4. Seasonal Industry

    A subset of companies that earn the majority of their income ...
  5. Seasons

    The current stage of a proposed business idea or concept. Seasons ...
  6. Swing High

    Swing high is a term used in technical analysis that refers to ...
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. Small Business

    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.
  3. Personal Finance

    The Cheapest Times To Fly To Australia

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

    Home Depot to Hire 80,000 Spring Seasonal Workers

    Home Depot (NYSE: HD) plans to hire more than 80,000 seasonal workers for its busy spring season, and has revamped its hiring process to make that happen. The changes to its online application ...
  5. Investing

    Why This Earnings Season May Be the Best Yet For Stocks

    Third Quarter Bump: Stocks typically post the biggest gains in the 30 days following the start of earnings reporting.
  6. Investing

    Best Time to Buy a House? NOW

    If you're looking to buy your first home, fall is the season when inventories are at their peak. The best time to buy a house could be right now.
  7. Trading

    These ETFs Tend to Do Well in June

    These ETFs have moved higher in June at least 82% of the time.
  8. Insights

    The History Behind Labor Strikes In Pro Sports

    Before players' unions were formed, pro athletes didn't always have the rights they do today. Here's a look at some devastating strikes in sports.
  9. Personal Finance

    Airline Ticket Prices: What a Difference a Day Makes

    When to start ordering airline tickets for the best prices.
  1. 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 >>
  2. 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 >>
  3. 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 >>
  4. When is earnings season?

    Earnings season is the period of time during which a large number of publicly traded companies release their quarterly earning ... Read Answer >>
  5. How much does seasonality affect the net sales figures of companies, such as retailers?

    Explore how retail sales and other businesses are affected by seasonality, with some examples of certain product sales that ... Read Answer >>
  6. How does an investor compute a Seasonally Adjusted Annual Rate of Sales for an automotive ...

    Learn how the seasonally adjusted annual sales rate for auto companies is computed, and the significance of seasonality for ... Read Answer >>
Hot Definitions
  1. Standard Deviation

    A measure of the dispersion of a set of data from its mean, calculated as the square root of the variance. The more spread ...
  2. Entrepreneur

    An Entrepreneur is an individual who founds and runs a small business and assumes all the risk and reward of the venture. ...
  3. Money Market

    The money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities ...
  4. Perfect Competition

    Pure or perfect competition is a theoretical market structure in which a number of criteria such as perfect information and ...
  5. Compound Interest

    Compound Interest is interest calculated on the initial principal and also on the accumulated interest of previous periods ...
  6. Income Statement

    A financial statement that measures a company's financial performance over a specific accounting period. Financial performance ...
Trading Center