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'Economy Recovery' Overtakes 'Economy Depression' as Search Term

Posted by Jerry Bowyer on 8/4/20 9:00 AM

One of the ways to get a sense of bottom-up sentiment is to look at which phrases people are searching on. Google Trends allows users to not only see how various search phrases rank compared to one another, but also to show how those vary over time. This allows us to see how various search terms rise, peak, fall off, and get displaced as competing search terms peak in their stead.

 

We see below that interest in 'economy depression' peaked in the third week in March. During that week, 'economy recovery' registered only 4% as much interest.

 

Line chart 2

(Source: Google Trends)

After that, 'economy depression' falls off dramatically, by 20% in the next week, flattening out in the following week, and then falling 30% in the week after.

Whereas 'economy recovery' peaks a week later and peaks several more times in the next two months.

We see that May and early June tend to be dominated by growth in interest in recovery. Search terms and headlines don't tell us everything, but they tell us some things. This is telling us that pessimism might have peaked in late March, which is quite consistent with the other economic data we've been seeing.

Topics: Economics

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