"The crux of the issue is government-issued data, specifically from the Bureau of Labor Statistics. The BLS is the backbone of our economic data infrastructure, offering hyper-specific information on everything from jobs to prices. Not only is it valuable in its own right, it's also leveraged by private-data providers to build out their feeds. But budget cuts, leadership changes, and old-school data-gathering techniques mean the data so many people and businesses rely on might not be that reliable for much longer."
"If you're unfamiliar, alt data is non-traditional information that's not readily available and often takes some time to sift through. A classic example: Satellite images of a retail chain's parking lots to gauge foot traffic. Why is this relevant? Because it shows the outside-the-box ways companies and investors can get economic data. And while it might not be as all-encompassing as what the BLS offers, it's a start."
Government-issued economic data from the Bureau of Labor Statistics is eroding due to budget cuts, leadership turnover, and outdated data-gathering methods. The BLS supplies detailed metrics on jobs and prices that underpin private data feeds and public decision-making. Diminished reliability of that data creates risks for individuals, businesses, and policymakers trying to navigate the economy. Alternative data sources, like satellite imagery to estimate retail foot traffic, can partially substitute but are often costly and exclusive. As publicly available datasets weaken, wealthier investors and firms that can pay for alt data gain informational advantages, potentially widening economic and market-access inequalities.
Read at Business Insider
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