Sales have had a sharp recovery
Why are Chinese suddenly buying more instant noodles?
The fear is that it means consumers are tightening their belts in what would be a worrisome sign about the impacts of the economic slowdown and trade war.
The food tracks China's recent economic history. Sales of instant noodles exploded with the rise of industrialization then declined as China's middle class emerged as consumers traded up to better food. They have been ind decline since 2015.
However sales of instant noodles rose for the first time again last year and the World Instant Noodles Association (yes, it exists) expects a further sales rise this year.
Ultimately, I think these numbers are laggy and reports hint that lower subsidies for delivery meals may be part of the story. However I think there is a bright future in indicators like this. Instant noodles along will never tell the whole story but a cross-check against a dozen similar indicators in the future -- especially if the data is real-time -- will offer a level of insight into the economy unlike ever before.
That's the promise of big data and economics promises to benefit more than any other soft science. I'd argue that if you gave away all the real-time sales of a grocery store chain today, you could build a better economic model than anything in existence.
More at the SCMP.
