Businesses use economic indicators in various ways:
Forecasting Demand: By analyzing indicators like consumer confidence and retail sales, businesses can forecast future demand for their products and services. Cost Management: Indicators such as the producer price index (PPI) help businesses manage costs by predicting changes in input prices. Expansion Plans: Economic indicators like GDP growth rates and new business orders assist companies in deciding when to expand operations. Financial Planning: Interest rates and inflation rates help businesses in planning their financial strategies, including borrowing and investing.