Using internet search data as economic indicators

The Bank of England’s Quarterly Bulletin is usually, dare I say, a bit boring. Consequently I will list its contents and leave it up to you whether you read all or any of the individual articles.

However, this article, by By Nick McLaren of the Bank’s Conjunctural Assessment and Projections Division and Rachana Shanbhogue of the Bank’s Structural Economic Analysis Division, is of interest not only because of the economic significance but also for the description of using search data from the Internet.

Data on the volume of online searches can be used as indicators of economic activity. This article examines the use of these data for labour and housing markets in the United Kingdom. These data provide some additional information relative to existing surveys. And with further development, internet search data could become an important tool for economic analysis.
Read the full article (PDF 7pp)

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