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What Foot Traffic Reveals About Demand

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  • Alexander Tan

Abstract

How do economists measure sudden changes to demand and estimate how firms respond to those shocks? In manufacturing, factories and warehouses generate detailed records of production, making it easier to trace changes to supply and demand. But in the business-to-consumer economy — which adds more value to GDP than manufacturing and accounts for about one-third of U.S. employment — demand is intrinsically determined by the flow of customers, which is influenced by various factors.

Suggested Citation

  • Alexander Tan, 2026. "What Foot Traffic Reveals About Demand," Econ Focus, Federal Reserve Bank of Richmond, vol. 26(Q3), June.
    • Handle: RePEc:fip:fedrrf:103402
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    File URL: https://www.richmondfed.org/publications/research/econ_focus/2026/q3_research_spotlight
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