Exploring the Impact of Structural Change on Economic Data and Forecasting

Structural change is a challenge. Data becomes less reliable, and traditional economic relationships break. Last week, the UK reported London house prices underperformed the rest of the country, reflecting shifts triggered in part by flexible working. That trend changes real estate demand, consumption patterns, travel patterns, productivity, and leisure time—and tends to mean that economic activity is under-reported. This is why details in data are increasingly important.