Quotation Schwarenthorer, Pirmin Christoph. 2019. Macroeconomic Trend Integration in Business Forecasting. EURO 2019 Dublin, Dublin, Ireland, 23.06.-26.06.




Traditionally, companies forecast based on company internal historical time-series data and qualitative signals from the market. In times of volatile markets, this leads to a myopic view that is not capable of anticipating demand shocks or trading cycles. This paper presents a forecasting method that matches macroeconomic trends with microeconomic performance indicators to obtain a more robust data basis. After calculating the rates of change of monthly sales data, a correlation analysis with predictable macroeconomic trend indicators like the purchasing manager index is conducted in order to accomplish a business forecast based on leading indicators. The resulting forecasts can be used for tactical and strategic supply chain decisions reaching from the extension of supplier basis and human resource decisions to investments in production facilities. Using practical examples of an US based global player in the oil and gas industry as well as a market leader in the formwork industry it is shown that the application of this method leads to better investment decisions both in case the trend points upwards and in case the trend points downwards. In either case, companies applying this kind of forecasting method are vested with a competitive advantage compared to companies who conduct yearly forecasts based on internal data only.


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Publication's profile

Status of publication Published
Affiliation External
Type of publication Paper presented at an academic conference or symposium
Language English
Title Macroeconomic Trend Integration in Business Forecasting
Event EURO 2019 Dublin
Year 2019
Date 23.06.-26.06.
Country Ireland
Location Dublin
URL https://www.euro2019dublin.com


Austrian Center for Digital Production
Schwarenthorer, Pirmin Christoph (Former researcher)
Research Institute for Supply Chain Management FI (Details)
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