Federal Reserve Economic Data

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Nowcasting current activity

How's the economy doing...now?

Forecasting, as we all know, tries to predict the future. For FRED’s purposes, that prediction is how a statistic will evolve. Nowcasting, a variant of forecasting, looks at the current state of a statistic that hasn’t yet been released because the period of coverage is not yet over. Nowcasting is one way to examine current economic activity; another was discussed in a previous post.

GDP is a popular target for nowcasting, and FRED covers the nowcasts of several Federal Reserve Banks—with the Federal Reserve Banks of Atlanta (GDPNow) and St. Louis nowcasts shown here along with the final GDP numbers released by the Bureau of Economic Analysis. To gaze into the future, focus on the very last data point for each nowcast (Q4 2017, shown here), as this is what nowcasting is all about.

The earlier data points for the nowcasts are the last estimates before the first (early) GDP release by the BEA, which is typically revised over time to create the green line. Like the BEA’s GDP numbers, the nowcasts are revised several times per month.

We see that there are disparities between the nowcasts. While they are in principle all based on the same information, estimates can differ because of different statistical methodologies and how they are revised over time. And what about the differences between the nowcasts and the final data? The BEA obviously has the advantage of access to more raw data and more time to refine the numbers.

How this graph was created: Search for “nowcast” and all the series you want should appear. Select the relevant series and click “Add to Graph.” From the “Edit Graph” menu, use the “Add Line” option to search for and select “real GDP” (use the growth rate series). Finally, start the graph in October 2011, the first data point of GDPNow.

Suggested by Christian Zimmermann.

View on FRED, series used in this post: A191RL1Q225SBEA, GDPNOW, STLENI

Advance retail sales on FRED

Getting an earlier look into current economic activity

FRED recently added a set of time series from the Census Bureau known as “advance retail sales.” This data set isn’t about making technological progress in the retail sector; rather, it’s about collecting preliminary information about retail sales statistics and releasing those statistics before they’re considered definitive. This advance information may be premliminary, but it’s also quite useful: Retail sales are a large part of the economic activity in a country, and knowing how well the sector is doing is a good proxy for other economic indicators that are released much later.

The graph shows one of the advanced series (in blue) along with the history of final releases (in red). In FRED, you can save a graph in your account and choose to have the graph automatically update to include the latest data. This way you can easily monitor how a particular indicator is doing over time. The FRED dashboard is a great tool for this.

How this graph was created: Search for “advance retail” or start with the release table linked above. Choose a series. Look in the notes for the code of the corresponding historical series. From the “Edit Graph” section, open the “Add Line” tab and use the series code. Select the last year of data.

Suggested by Christian Zimmermann.

View on FRED, series used in this post: MRTSSM44X72USS, RSAFS

New reflections for the new year

Some good news and some bad news about U.S. life expectancy

For many of us, it’s almost impossible to avoid at least some self-evaluation during the holidays, as we transition from one calendar year to the next. So here’s some input and, perhaps, something new to think about at the start of the year.

Let’s look at the good news first: Over the past 50 years, life expectancy in the U.S. has increased significantly, by almost 9 years, from 69.8 in 1960 to 78.8 in 2015. (The measures here are based on “life expectancy at birth,” which is the average number of years a newborn infant would live if prevailing patterns of mortality at birth were to stay the same throughout his or her life.) The graph shows that this improvement for the U.S. (thick black line) has been relatively steady over the years. To be sure, adding 9 years to a life is a big deal. A longer lifespan allows us to enjoy more years of retirement and interact with family (including children, grandchildren, and great-grandchildren) but it’s also associated with better overall health over the lifetime.

But the graph also shows two patterns that also deserve reflection. First, the gains in life expectancy have been slowing down since the early 1980s, most notably in the past five years. Second, the U.S. was right in the middle of the pack in 1960 but is now lagging far behind all other developed countries. Indeed, in 1960, the U.S. was below the U.K. and Canada, essentially on par with France and Germany, but significantly above Japan and Italy. Fast forward to 2015 and you can see the U.S. is below all these countries by a significant margin: The Japanese and Italians are expected to outlive Americans by an average of five years, and the French are expected to outlive Americans by four years.

This comparison is among developed countries with comparable economic and geographic conditions (all are developed and all are in the Northern Hemisphere), but all these countries also have a presence in the genetic makeup of the U.S. population. So, what are the culprits that have caused the U.S. to lag behind? Food? Stress? Lack of exercise? Ingesting toxins and other risky behavior? Even if we knew the precise reasons, why would conditions be so different today?

How this graph was created: Search for “Life-Expectancy” and “United States.” From the Edit Graph” menu, select “Add Line” to add each of the other six countries, each time simply typing “Life-Expectancy” and the country name. Finally, to highlight the U.S. series, choose “Format” and select 5 for the width of the line and black for its color.

Suggested by Alexander Monge-Naranjo.

View on FRED, series used in this post: SPDYNLE00INCAN, SPDYNLE00INDEU, SPDYNLE00INFRA, SPDYNLE00INGBR, SPDYNLE00INITA, SPDYNLE00INJPN, SPDYNLE00INUSA


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