5 Unusual Economic Indicators That Tell Us About the Economy

unusual economic indicators: You’ve probably heard of indicators like the Big Mac Index (if you haven’t already, read our previous article). However, there are many other lesser-known indicators that can actually provide valuable insight and benefit the economy.

Today, I will introduce some unusual economic indicators that can predict economic conditions. Read on to find out what it is!

The most unusual economic indicators

1. Lipstick index index

The Lipstick Index was created during the 2001 recession by Leonard Laude, one of the billionaire heirs and chairman of the Estee Lauder cosmetics company.

What is that? In the fall of 2001, he discovered that when the U.S. economy suffered from a recession, lipstick sales were actually increasing instead of decreasing.

Lauder believed that lipstick sales were inversely related to the health of the economy. In other words, as the economy worsened, lipstick sales improved.

This suggests that when women face economic uncertainty, they tend to purchase more affordable beauty products, such as lipstick, and less luxury items, such as handbags, shoes, and dresses.

What is the evidence?

Evidence for this idea includes an 11% increase in lipstick sales at large retailers when Lauder introduced this metric. Major cosmetics brands also saw a surge in sales during the U.S. economic downturn in the early 2000s.

2. Garbage indicator

The concept is very simple! The Waste Index indicates that the more money people have, the more things they buy and, as a result, the more they throw away. As wealth increases, individuals tend to spend and consume more. Waste disposal volume is expected to increase due to economic growth.

What is the evidence?

According to a 2010 Bloomberg report published by economists Michael McDonough and Carl Riccadonna, the correlation between waste and GDP reached 82% from 2001 to 2012.

3. Champagne Index

This Champagne Index essentially looks at whether consumers are buying luxury or premium products and provides insight into market sentiment.

The name comes from the idea that champagne sales are generally associated with rising income levels in an economy and that people often celebrate by opening bottles of champagne.

Champagne sales tend to decline during economic downturns. Because champagne is considered a luxury good, people are more inclined to buy it when the economy is doing well and with an optimistic view of future growth.

On the other hand, in difficult economic times, individuals are less likely to spend money on champagne or other luxuries.

4. First date indicator

When the economy is down and emotions are low, people often turn to dating to find solace, avoid sadness, and overcome loneliness.

This indicator basically focuses on the number of people who try to connect to make themselves feel better when the economy is not working properly.

What is the evidence?

Dating websites had their busiest quarter in more than seven years in the fourth quarter of 2008. Match.com saw a similar increase in traffic in late 2001, shortly after the September 11 attacks.

5. Unclaimed corpse indicator

Another unusual way to understand economic conditions is as follows. When funeral costs are too high, many families do not collect the body of the deceased, and in such crisis situations, the idea is that the government should pay for the burial.

What is the evidence?

Even during difficult times, such as the 2009 financial crisis, Detroit saw an increase in the number of unclaimed bodies in its morgues and the government spent large sums of money on burials. At that time, funeral costs nearly doubled in just two months compared to 2008.

It doesn’t end here. There are other strange indicators used to gauge the state of the economy, including the Guns to Caviar Indicator, Baby Diaper Rash Index, and Buttered Popcorn Index.

Do you think there are any other weird or unusual economic indicators?

Written by Shivani Singh

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