Alternative data specialist QuantCube Technology announced the availability of the QuantCube Industrial Production Indicator (IPI) nowcast – “providing a daily update on industrial production output in the U.S. market.”
The indicator “measures year on year changes in outputs from the manufacturing, mining, electricity and gas industries to provide insights into total industrial production, a key driver of GDP.”
This indicator of the health of the economy will “give traders and investors crucial insights on a daily basis into industrial production output levels in advance of official data from the Federal Reserve which is published on a monthly basis.”
Thanh-Long Huynh, CEO and Co- Founder, QuantCube Technology, said:
“The publication of the Fed’s Industrial Production Index each month has the power to move markets – so providing our customers with a daily update on industrial production gives them a vital early insight into a critical indicator of economic activity that’s closely correlated to GDP. Our customers can use the indicator to estimate economic performance and to indicate turning points in the business cycle in order to inform their investment strategies.”
QuantCube uses “a mixed frequency model to analyse and aggregate high frequency data related to industrial production.”
The result is “an indicator that correlates very closely with the Fed’s monthly index.”
The Industrial Production Indicator is “available to users of QuantCube’s Macroeconomic Intelligence Platform – which also provides real-time macro variable indices for GDP, Consumption, Inflation and Employment, giving users invaluable insight into global economic and trade trends.”
As noted in the update. QuantCube Technology “uses artificial intelligence and big data analytics to deliver real-time macro-economic insights.”
The firm “operates one of the largest alternative data lakes in the world, processing more than 15 billion data end points.”
Sources reportedly “encompass news, social media, satellite data, professional networks and consumer reviews, as well as international trade, shipping, real-estate, hospitality and telecoms data.”
QuantCube’s macro nowcast indices, “on variables including economic growth, inflation, employment and international trade, correlate highly with official data and significantly beat the consensus.”
Financial institutions using QuantCube data “benefit from real-time insight, often ahead of official numbers, which they can use to inform their investment strategies.”
Headquartered in Paris, QuantCube employs “a diverse international team of data scientists with expertise in multilingual NLP, deep learning and machine learning techniques.”
The company’s shareholders “include Moody’s and Caisse des Dépôts and its R&D in computer vision has been partially funded by the European Space Agency (ESA) and French government space agency CNES.”