Since its founding nearly 30 years ago, Chally's candidate testing business has been a leading economic indicator.

Typically Chally's testing volume predicts both economic downturns and upturns by 3 to 6 months. We have a specific percentage of our volume directly dependent on the private sector's immediate employment plans to fill skilled roles such as sales, management, technical and administrative positions. Those organizations that are specifically sales oriented such as distributors, value added resellers (VARs) and other sales driven organizations tend to lead an upturn by 3 months while manufacturing based organizations tend to lead by 4-6 months.

Employment depth is based on the total monthly number of candidates tested by all clients. To establish a "baseline" during a period when the economy was strong, the monthly average for the 3rd and 4th quarter of 2000 was calculated. That number was set equal to a base of 100. Each following quarter was compared as a percentage of that base.

Employment breadth is based on the average Range & Number of different companies testing during the same "strong economy" period also set as a baseline of 100 and also calculated in the following quarters as a percent of that base.

Converging trends in these two trend lines usually identify both the peak and low point of economic activity within a couple of weeks. A continuing trend change of two consecutive months substantiates the reliability of the change.