The National Arts Index is a highly distilled annual measure of the health and vitality of arts in the United States by using 76 equal weighted, national-level indicators of arts activity. This report covers an 11-year period, from 1998 to 2008. The National Arts Index fell 4 points in 2008 to a score of 98.4, reflecting losses in charitable giving and declining attendance at larger cultural institutions, even as the number of arts organizations grew. The 2008 downturn in the Index was not wholly unexpected. With 100,000 nonprofit arts organizations and 600,000 more arts-related businesses, 2.24 million artists in the workforce, and billions of dollars in consumer spending, the arts industries largely track the nation’s business cycle.