Bloomberg unveils BSM US Consumer Spend Index

Bloomberg last week announced the launch of the Bloomberg Second Measure (BSM) U.S. Consumer Spend Index, which utilizes Bloomberg’s proprietary alternative data to provide a near-real time comprehensive view of U.S. consumer spending. Bloomberg says the Index, powered by transaction data analytics, is available via the World Economic Analyzer {ECAN<GO>} solution on the Bloomberg Terminal. The analytical tool now offers investors a differentiated way to track consumer spending in the U.S., utilizing both alternative data and traditional macroeconomic indicators.

Developed by a team of data scientists and economists, the BSM U.S. Consumer Spend Index monitors aggregated, observed spending across the country, added Bloomberg. Given that general consumer spending accounts for nearly 70 percent of the nation’s GDP, Bloomberg continued, the Index is a key gauge of U.S. economic vitality. The index provides investors the ability to drill down into spending by sector, including sectors tracked by U.S. Retail Sales, as well as additional industries like air transportation and accommodation. Bloomberg says for its 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 U.S. economy.

“New technologies are enabling macro investors to use larger datasets and more sophisticated quantitative strategies, enhancing their ability to rapidly analyze economic indicators and the market implications,” said 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 U.S. Consumer Spend Index to help Bloomberg Terminal users quickly understand and convey complex economic trends.”

Bloomberg says the BSM U.S. Consumer Spend Index enables investors to answer questions related to U.S. consumers’ economic concerns such as:

• How are U.S. 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 U.S. consumers’ credit card and debit card transactions derived from a panel of 20+ million consumers, added Bloomberg. The index is updated daily on a 7-day lag, enabling investors to analyze U.S. consumer trends in near-real time.

“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,” said 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.”

This announcement builds on Bloomberg’s investment in democratizing access to alternative data, added the company. Through the Bloomberg Second Measure acquisition completed in 2020, Bloomberg says it began offering the consumer transaction data analytics product. In 2023, Bloomberg launched ALTD <GO>, an alternative data function that gave Bloomberg Terminal customers an early read on company performance, side-by-side with traditional market data, broker research, estimates and news. Most recently, Bloomberg made its proprietary alternative data available to Enterprise customers via Data License.

Bloomberg customers can access the index via {ECAN US CONSUMER SPEND <GO>}. Bloomberg says the Bloomberg Second Measure U.S. Consumer Spend Index is not administered by Bloomberg’s benchmark administration business and is not intended for use as a financial benchmark.