The AGEM Index, a composite score of 17 global gaming suppliers, declined by double digits for the second consecutive month, reaching a value of 88.89 points by the close of June 2010 (down 14.69 points from May). The latest movement representsed the largest monthly decline in 20 months, pushing the index to a level last seen more than a year ago. Following weaker-than-expected reports oin labour and consumer spending, investors took a step back to re-evaluate their positions as the pace of recovery is not moving as fast as predicted. Investment banks are doing the same with Goldman Sachs downgrading several global gaming suppliers to sell from neutral, indicating that revenue from replacement products will be relatively slow and that no material pickup in the market will occur in the near term.
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