The Power of Anecdotal Data

We know that many individuals, families, and communities face systemic barriers to economic prosperity—particularly historically underserved communities and people of color.1 The Atlanta Fed has made improving economic mobility and resilience a guiding principle, prioritizing listening, learning, researching, educating, convening, and collaborating with those who can take action to create a more inclusive and resilient economy.2

A key component of the Atlanta Fed's work is gaining a holistic understanding of economic conditions in the Southeast. Traditional, quantitative measures of economic health like the unemployment rate and consumer price index are a critical piece of this puzzle. However, we also know that aggregated data doesn't always capture the full picture of what is happening on the ground. Without digging into the narrative behind the numbers, it can be difficult to tease out how particular segments of the economy are responding to changing conditions. It is sometimes through anecdotal data that we hear conditions are getting better or worse before such realities reveal themselves in the economic data.

As Chair Powell noted in his press conference on January 31, 2024, "[s]tarting with GDP data is—and working into what's actually affecting people's lives is—is challenging." He added "I really like anecdotal data…The 12 Reserve Banks have really the best network of anyone. In all their Districts, they're talking to not just the business community." Chair Powell also goes on to say, "I personally find it very helpful in understanding what's going on. … I think you hear things before they show up in the data sometimes."3

Atlanta Fed President Raphael Bostic also underscored the importance of anecdotal data in a recent blog post: "conditions can change so quickly—often before showing up in the data—that I can't imagine not using anecdotal reports from employees and employers in our policy formulations at the Atlanta Fed."4

So, the Atlanta Fed both analyzes economic data and asks business and community partners about how small businesses, households in low- and moderate-income circumstances, nonprofits, larger corporations, and consumers are faring. But how does the Atlanta Fed collect anecdotal insights, and what do we do with them?