Google as an Economic Indicator
Thursday, December 4, 2008 21:02
One of my favorite tools for gauging the social mood and economic pulse of the country is Google Insights.
Google allows you to to access their search data and research any keyword or search phrase you wish. You can view your results broken down by country, region, and even City. They also chart this data for you automatically.
We can use this tool to research the phrase “Food Stamps.” The resulting information shows that the amount of people searching “Food Stamps” has been pretty stagnant from 2004-2007 (With the exception of a slight blip in 2005 from Katrina). Sometime in late 2007, the number began exploding upwards and still continues to make new highs.
US food stamp usage should be at 4-5 year highs (Google only goes back to 2004) if the data is accurate. A recent statement by the The Food and Nutrition Service confirms that the amount of Americans on food stamps has hit an all time high. 31 Million Americans are now on food stamps. Google passes the test.
Here are a few interesting studies using Google Insights (It Ain’t Pretty)
The results paint a very bleak picture of the US economy. The only good news is that, given the way the data is compiled, the results are NOT leading indicators but concurrent. The bad news is that the best leading economic indicator, the stock market, is not showing any signs of improvement.
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