If you want to gauge the direction of the economy, look no further than the data.
"When you're looking for those specific numbers, those would be hard pieces of data, data that's collected frequently that we can track over time," said Abby Hall, associate professor of economics at the University of Tampa.
While typical indicators like the unemployment rate, inflation rate, and GDP are important, there are some unusual metrics that may provide insight into the economy. One intriguing indicator? Men's underwear sales.
"Your boyfriend or your husband may not just be wearing holes in his boxers for fun," Hall explained. "It might actually be an indicator of overall economic health."
IN CASE YOU MISSED IT | What the latest employment report means for jobs and prices
According to Hall, the so-called "Men's Underwear Index" suggests that sales of men’s underwear tend to decline during periods of financial uncertainty, as men attempt to make their dollars stretch further. Even former Federal Reserve Chairman Alan Greenspan reportedly tracked this unusual index.
Another quirky measure, the "Baked Beans Index," reflects how demand for inexpensive foods like canned beans rises during tough economic times.
"In the case of a recession, say somebody's lost their job or their income is declining, people might wind up buying more things like beans, which are relatively cheaper," Hall said.
Then there's the "Lipstick Index," which can hint at consumer sentiment and spending habits during downturns.
"The reasoning behind this, economists hypothesize, is that people are going to be purchasing relatively smaller luxuries during economic downturns," Hall noted.
IN RELATED NEWS | Summer travel costs down as gas prices hit lowest levels since 2021
These unconventional indicators aren’t flawless, but economist David McWilliams argues they provide a unique perspective on how human behavior influences the economy.
"All we're doing is we're studying this bizarre creature called a human being," McWilliams said. "That's what economics is all about."
"The more seriously we take it, the less likely we'll understand the nuances of what's going on, because people are beautifully irrational," he added.
