by forwardslash

A few weeks ago, when I was chatting with the head of one of America’s largest food and drink companies, he made a revealing comment about data flows. Like most consumer groups, this particular company is currently spending a lot of money to monitor its customers with big data. But it is not simply watching what they do or do not buy. These days it is increasingly scrutinising the micro-level details of pay and benefit cycles in every district in America. The reason? Before 2007, this executive said, consumer spending on food and drink was fairly stable during the month in most US cities. But since 2007, spending patterns have become extremely volatile. More and more consumers appear to be living hand-to-mouth, buying goods only when their pay checks, food stamps or benefit money arrive. And this change has not simply occurred in the poorest areas: even middle-class districts are prone to these swings. Hence the need to study local pay and benefit cycles.