U.S. | Unsupervised Learning for Industry Classification, State Eco. & MSA Sustainability

Summary

GMM and K-means allow us to produce classification systems to evaluate industry performance, analyze state economic resiliency, and assess MSA sustainability. Our industry classification system (ICS) helps identify common patterns and the impact of shocks for 1075 industries.

Key points

• Key points:
• States less exposed to severely impacted industries show greater economic resilience despite poor pandemic control
• Cluster analysis suggests that the biggest upside for sustainable banking products is in Western markets
• The analysis of extreme observations helps detect risks and opportunities
• Unsupervised learning is a powerful tool for regional and industry economic analysis, lending strategy, customer segmentation, fraud detection, talent acquisition, etc.

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