There are several emerging trends for non-traditional economic indicators that are becoming increasingly popular among economists and policymakers. Here are a few examples:
1. Mobility data. Analysis of mobility data from sources like smartphones and GPS devices can provide insights into consumer behavior and economic activity, such as changes in travel patterns, foot traffic in retail locations, and commuting trends.
2. E-commerce trends. The growth of e-commerce has created new sources of data on consumer behavior and spending patterns, including online sales data, browsing trends, and customer reviews.
3. Social media analytics. As social media continues to play a larger role in consumer behavior, analysis of social media data can provide insights into consumer sentiment, trends, and preferences.
4. Alternative data sources. There is a growing trend of using alternative data sources, such as satellite imagery, credit card transaction data, and web scraping, to gain insights into economic activity and consumer behavior.
5. Environmental data. Changes in environmental conditions, such as air quality, water usage, and land use, can impact economic activity in various ways, and analysis of environmental data can provide insights into economic and social trends.
The emerging trends in non-traditional economic indicators are reflective of the increasingly complex world we live in. For example, during the pandemic, we saw the stock market and home prices completely disconnect from reality.
Anyone who lived through the last economic crisis in 2010 knew that stock prices and home prices were not sustainable over the long term. I’d argue that the stock market and real estate market are no longer reliable economic measurements, because they don’t accurately reflect what’s happening in the real world for real people.
Additionally, the increasing availability of data from a wide range of sources, as well as the growing importance of digital technologies and environmental considerations in economic analysis. As the world continues to evolve, we’ll no doubt see new and unusual indicators being used to gauge economic performance.
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