Even professional economists hold varying opinions as to which economic factors are best considered when it comes to economic forecasting. There are many variables that one may use in order to predict a country’s economic future and monetary policy, but the formula through which they are combined varies from one person to the next.
Some specialists swear by the combination of retail sales and goods order levels in predicting possible upturns and downturns. Downgraded to a smaller scale, you may use the same concepts to decide which investments you should make.
Retail sales play a big role in economic forecasting, simply because it is a fast way to measure consumer behaviour. By measuring consumer confidence, you can gauge how well off the economy and the people are.
You can also use the level of ordered consumer goods to measure a country’s economic health. By measuring the amount of goods that the people demand from manufacturers, you can also measure how much the people are willing to spend for a particular production sector. Knowing which sector is doing well can guide you in deciding which goods to invest on. Putting your money down on goods that are facing a promising future is always a wise choice.