Bloomberg has announced the launch of the Bloomberg Second Measure (BSM) US Consumer Spend Index, writing that it utilises Bloomberg’s proprietary alternative data to provide a near-real time comprehensive view of US consumer spending.
The Index, powered by transaction data analytics, is available via the World Economic Analyzer solution on the Bloomberg Terminal. The firm writes that the analytical tool now offers investors a differentiated way to track consumer spending in the US, utilising both alternative data and traditional macroeconomic indicators.
Developed by a team of data scientists and economists, the BSM US Consumer Spend Index monitors aggregated, observed spending across the country. Given that general consumer spending accounts for nearly 70 per cent of the nation’s GDP, the Index is a key gauge of US economic vitality, the firm says.
The index provides investors with the ability to drill down into spending by sector, including sectors tracked by US Retail Sales, as well as additional industries like air transportation and accommodation. For Bloomberg Terminal users, alternative economic indices offer an interactive experience that enables them to systematically access and explore new types of data by complementing traditional indicators, enhancing forecasting capabilities and providing unique insights into the US economy.
“New technologies are enabling macro investors to use larger datasets and more sophisticated quantitative strategies, enhancing their ability to rapidly analyse economic indicators and the market implications,” says Michael McDonough, Chief Economist and Global Head of Central Banks and Government Financial Agencies at Bloomberg. “To support the evolving macro-driven investment process, we continue to develop easy-to-use, proprietary analytical tools with alternative economic indices like the BSM US Consumer Spend Index to help Bloomberg Terminal users quickly understand and convey complex economic trends.”
The BSM US Consumer Spend Index enables investors to answer questions related to US consumers’ economic concerns such as:
How are US consumers adjusting their spending between essential categories (such as Food and Beverage Stores) and discretionary categories (such as Food Services and Drinking Places, Hotel Accommodation, or Air Transportation)?
Which subcategory within a larger industry, such as Limited-Service Restaurants and Full-Service Restaurants, experienced the most sales growth?
How is intra-month consumer spending trending due to events such as Black Friday?
The flagship data analytics source for the index is Bloomberg Second Measure’s transaction data analytics, which take into account billions of US consumers’ credit card and debit card transactions derived from a panel of 20+ million consumers. The index is updated daily on a seven-day lag, enabling investors to analyse US consumer trends in near-real time, the firm says.
“As investors examine the rapidly evolving macroeconomic landscape looking for innovative ways to generate the best returns on their investments, there is an ever-growing need for new sources of high-quality, in-depth data, delivered quickly,” says Richard Lai, Global Head of Alternative Data at Bloomberg. “This new index, powered by Bloomberg’s proprietary alternative data, is a great example of our continued investment in providing the data and technology to help our customers make more informed decisions. We’re excited to continue applying alternative data to new use cases and asset classes across Bloomberg products.”
