What is the Seasonally Adjusted Annual Rate (SAAR)?
A seasonally adjusted annual rate (SAAR) is a rate adjustment used for economic or business data, such as sales numbers or employment figures, that attempts to remove seasonal variations in the data. Most data is affected by the time of the year, and adjusting for the seasonality means that more accurate relative comparisons can be drawn between different time periods.
- A seasonally adjusted annual rate (SAAR) is a rate adjustment used in business to account for changes in data due to seasonal variations.
- By adjusting data that is affected by seasons, more accurate comparisons can be made between different time periods.
- Utilizing seasonally adjusted annual rates are useful when comparing business growth, price appreciation, sales, or any data that has to be compared from one time period to another.
How do you calculate the seasonally adjusted annual rate?
To calculate SAAR, take the un-adjusted monthly estimate, divide by its seasonality factor, and multiply by 12. Analysts start with a full year of data, and then they find the average number for each month or quarter.
What is SAAR in auto?
Auto Sales Seasonally Adjusted Annual Rate (SAAR) | Open Data | Socrata.