Although businesses and governments pay millions of dollars for forecasts, are those forecasts not always on target, particularly during turbulent economic times?

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Numerical forecasts of the main national accounts, national economic indicators, industry time series, and firm accounting statements are regularly prepared. The forecasting of business trends takes place on three levels: at the national level, at the industry or market level, and at the level of the individual firm. It has become popular to combine forecasts for one, two, or three years ahead and to include quarterly forecasts spanning the same time horizon. Some firms need monthly or weekly forecasts, whereas others use forecasts that look forward two or three decades in order to make their decisions. Among the companies that commonly use long-range forecasting are life insurance corporations, public utility companies, and firms involved in long-term construction or manufacturing projects.