Alternative Data Increasingly Helping Economists Gauge War Shock

Economists expect their reliance on alternative data to increase in the next year, citing a need for higher-frequency indicators amid economic uncertainty tied to the war in Iran, according to a Bloomberg survey.

Almost half of the 33 respondents who follow the US economy said their use of alternative data has increased somewhat or increased significantly since the onset of the Middle East conflict. About an equal amount said their use has remained the same. Economists are relying more heavily on sources that provide additional information on energy and commodity flows as well as consumer spending and transaction data, according to the recent poll.