Using Public Procurement Data to Monitor Government Spending Across Different Administrations

|In Fundamental Analysis|By Vladi Nikolov

Fundamental Analysis

As the US Presidential elections in November 2024 draw near, the spotlight intensifies on the intricacies of government spending.

Public procurement offers a compelling lens through which to observe a nation's economic priorities. That said, understanding the shifts in public procurement trends across different administrations yields invaluable insights into evolving governmental priorities and expenditure patterns. 

The opportunity to delve into government contracting data holds paramount significance for hedge funds and institutional investors as it provides crucial insights into government spending trends, policy priorities, and emerging market opportunities.

By deciphering these trends, investors can anticipate market movements and identify investment prospects.

With its over 120 million government contracts awarded across more than 60 countries since 2010, TenderAlpha provides a historical context crucial for understanding how procurement trends evolve over time.

In addition, the daily updates with newly-awarded government contracts ensure users have access to the latest contract information, offering an almost real-time view of ongoing shifts.

Below we suggest three use cases of TenderAlpha's global public procurement data for hedge funds and institutional investors who want to advance their investment analysis.

Tracking Shifting Priorities: By comparing government contracts data across different administrations, you can identify trends that might signal policy changes impacting specific industries.

For example, relative surge in renewable energy contracts could be an indicator that the government increases its efforts towards sustainability. In turn, this may open up lucrative opportunities in clean energy companies.

This ability to track spending patterns empowers you to make informed investment decisions and potentially generate alpha by anticipating government focus areas before they are widely known.

Gauging Sectoral Growth: Analyzing trends in awarded contracts within specific sectors like healthcare, renewable energy, or technology can provide valuable insights into government focus areas.

This can inform investment decisions in companies positioned to benefit from increased government spending. TenderAlpha's data allows investors to track not just overall spending but also specific sub-sectors within each industry, providing a more nuanced view.

Predicting Infrastructure Spending: By identifying trends in government allocations towards infrastructure projects (roads, bridges, railways), investors can anticipate potential growth in related sectors like construction materials, engineering firms, and heavy machinery. 

Furthermore, TenderAlpha's public procurement data reveals not only the total spend but also specific project details, allowing for an even more granular analysis. 

Government contracting data paints a vivid picture of a government's approach to public spending, revealing its priorities and focus areas. It empowers investors to predict policy shifts, anticipate market trends, and identify undervalued opportunities.

Get in touch now to learn more about TenderAlpha’s global public procurement database and related data products!