Economic
Research

Smarter investment decision-making using Alternative Data
Nowcast supports quantitative investment decision-making by utilizing alternative data to analyze corporate performance in real-time.
service item image

Speedy detection of economic turning points

Using Nowcast’s POS data and credit card data, we enable our customers to detect turning points of the economy at a quicker rate compared to the speed of discovery when relying on official statistics.

service item image

Empowering high- granularity analysis

We enable our customers to conduct high granularity analysis of consumer trends. Analysis can be done not only at national level but also by regions, prefectures, municipalities or areas in throughout Japan. Furthermore, categories such as age, gender, retail channel, and more can be used by our customers for more precise consumer analysis.

Request demo
Understanding the actual economic impact of the ‘Corona-wreck’
Use case 1
The following is an example of timely analyses of the leisure industry that was hit the hardest by the COVID-19 pandemic, and the significant increase in digital consumption.
Tsutomu Watanabe, a professor of economics at the University of Tokyo and the founder of Nowcast Inc., used JCB Consumption NOW data to analyze the economic impact of the new Coronavirus on each industry in March 2020. As a result, as shown in the figure below, it is clear that while service industries such as travel and entertainment have decreased significantly, mainly due to the decrease in the number of spenders; EC, supermarkets, and content distribution are increasing due to the higher demand for stay-at-home goods and services.
solution-item-1
Source: Japan Cabinet Office “Monthly Economic Report”(April 2020)
Use case 2
Nowcast’s economic research service is widely used by government agencies, securities firms, media companies, etc. to forecast the post-COVID situation of the economy.
For example, in April 2020, it became a hot topic when the Japanese government discerned the economy to be in the state of “Deterioration” for the first time in 11 years. The government cited Nowcast’s JCB consumption NOW as a data source for this decision. JCB consumption NOW indicated early the deterioration of the restaurant (eating-out) and travel industries.
Source: Japan Cabinet Office “Monthly Economic Report”(April 2020)
This month’s index (3) Personal consumption
Compared to supermarkets, sales volume is increasing due to stocking up, the consumption of services such as Food-service industry and Travel insustry is weak for credit card expenses in March.
The ratio of Food-service industry and Travel insustry in the items of expenses decreased toward the middle of April.
solution-item-2
Source: Japan Cabinet Office “Monthly Economic Report”(April 2020)
Use case 3
One of the characteristics of alternative data is that it enables high-granularity analysis.
This case study suggests that the “drinking at home” behavior, which has been trending since the start of the COVID-19 pandemic, is more pronounced among women compared to men. Zooming into the subject, while women’s consumption rate in izakayas (Japanese pubs) has consistently decreased significantly compared to men, women’s consumption rate at liquor stores has increased significantly.
solution-item-3 solution-item-4
Client Achievements & Use Cases
All
Financial Institution
Think Tank
Government Policy
Media
All
Financial Institution
Nomura Securities

In their “Nowcast of Consumption Using Business Data” article, Nomura Securities wrote that using machine learning methods, they adapted JCB consumption NOW as an explanatory variable to estimate the GDP consumption objective variable; and that its accuracy exceeds that of private economists.

Think Tank
Mizuho Research Institute

Mizuho Research used Nowcast’ Macro data services and analyzed service consumption trends based on industry-specific indexes in a report that analyzes the prolongation of the ‘Corona shock’.

Think Tank
Japan Research Institute

Japan research used Nowcast’s Macro data services to generate an index showing personal consumption in the Japanese economic outlook in November 2020.

Think Tank
Daiwa Institute of Research Group

Daiwa Institute used Nowcast Macro data services as an index when analyzing trends in “accommodation” and “restaurants” categories in reports that analyze consumption trends during the COVID-19 pandemic.

Government Policy
Cabinet Office

The Cabinet Office posts Nowcast indexes in monthly economic report materials in which ministers and prime ministers participate in.

Government Policy
Cabinet Office

For almost every month, the Cabinet Office quoted Nowcast’s index as one of the few indicators to capture service consumption such as the Leisure category during the COVID-19 pandemic.

Government Policy
METI

In May 2020, the Ministry of Economy, Trade and Industry (METI) used Nowcast’s index to capture changes in consumer behavior during the COVID-19 pandemic and cited it in “Industrial Structure Growth Strategy Subcommittee” document material.

Government Policy
Bank of Japan

Nowcast’s index was quoted by Bank of Japan to capture service consumption in their “Prospects of Economic and Price Situation” report, which is one of the most important reports issued by the Bank of Japan.

Media
NHK

Nowcast’s index is used as an index to grasp the consumption trend of the previous half-month in NHK news.

Media
TV Tokyo

Featured in TV Tokyo’s show “Fuchiko Assault Market” in Mosate, as an economic indicator to pay attention to during the COVID-19 pandemic.

Media
Nikkei Shinbun

Nikkei Shinbun introduced Nowcast’s index as one of the few indexes that can track online consumption trends in an article dated June 25, 2020.

Media
Asashi Shinbun

Asahi Shinbun used Nowcast’s index to see the consumption rates by industry in May 2020.

Media
Sankei Shinbun

Sankei Shinbun highlighted Nowcast’s index as an indicator to determine the bottom of the decline in consumption during the state of emergency.

Discover in real-time, trends in consumer spending, which accounts for 60% of Japanese GDP
place-holder
Nikkei CPI Now is a price index that uses POS data from Nikkei Inc., which collects data on retail stores all over Japan for over 30 years. With the information linked to POS data, our customers have access to check sales trends and price trends by product and region.
place-holder
JCB Consumption NOW is a consumption trend index developed by Nowcast and JCB, which is Japan’s only credit card brand operator. With a short time lag of only 2 weeks, Nowcast provides macroeconomic indicators that strongly correlate with the household survey of the Ministry of Internal Affairs and Communications, as well as the commercial dynamic statistics of the Ministry of Economy, Trade and Industry. Our customers can also check trends by age, gender, and usage sector of credit card holders.

Investment Research

service-img
Nowcast provides alternative data-based analysis services for Japanese stocks.
We help institutional investors make smarter investment decisions by providing rich data sets including POS data and credit card data, as well as insights from analysts and analytics teams that specialize in alternative data.
service-img

Request Demo

If you would like to have a demo of Nowcast’s services (Investment Research, Economic Research), please submit your request here.

Request demo
demo request

Group Companies