With these unstable macroeconomic conditions, determining the trajectory of consumer spending with high-frequency alternative sources can offer investors a timely advantage for anticipating the probability of economic slowdown. In this report, we summarise these dataset types.

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In recent weeks, Fed chair Jerome Powell has been criticised for being too slow to cut interest rates. The Fed may benefit from using more timely alternative substitutes instead of relying on slow-moving economic data to shape most of its policy decisions. Using alternative data would enable policymakers to react more quickly to deteriorating economic conditions.

Two-thirds of the US economy is driven by consumer spending – a sector that has seen strong growth in the availability of alternative datasets relative to other sectors...