Constructing Consumer Sentiment Index for U.S. Using Google Searches
Nicolás Della Penna and
Haifang Huang ()
No 2009-26, Working Papers from University of Alberta, Department of Economics
We construct a consumer sentiment index for the U.S. using the popularity trends of selected Google searches. The final index consists of four components and is highly correlated with the Index of Consumer Sentiment from the University of Michigan and the Consumer Confidence Index from the Conference Board. Among the three sentiment indices, the Google search-based index (SBI) leads in time and predicts other indices. In terms of forecasting consumer spending, the SBI outperforms both the ICS and the CCI and provides independent information. For robustness, we use multiple measures of consumer spending and a range of statistical specifications. The finding is robust.
Keywords: consumer sentiment; consumer confidence; leading economic indicators (search for similar items in EconPapers)
JEL-codes: C53 E21 E27 (search for similar items in EconPapers)
Date: 2009-10-01, Revised 2010-02-01
References: Add references at CitEc
Citations View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
http://www.economics.ualberta.ca/~/media/economics ... WP2009-26-HuangH.pdf Full text (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:ris:albaec:2009_026
Access Statistics for this paper
More papers in Working Papers from University of Alberta, Department of Economics
Contact information at EDIRC.
Series data maintained by Brenda Carrier ().