Importance of Economic Forecasting for a Business Firm

Importance of Economic Forecasting for a business firm are as follows:
Predicting of sales of a firm: It is a well known fact that during the phase of depression, sales of a firm start to decline and during the phase of prosperity, these sales start to increase. On the basis of economic forecasts, total sales for an industry can be easily forecasted and a firm can forecast its share easily on the basis of such forecasts.
Arrangement of Raw Materials: Economic forecasts help in the arrangement of raw materials in adequate quantity and at proper time. These forecasts help in determining the amount of sales and production for a certain period of future. Requirements of raw materials can easily be estimated on the basis of forecasts of sales and production. A firm can decide proper time for placing the order of raw materials. It can decide economic order quantity also.
Arrangement of Labor: Economic forecasts help a firm in the arrangement adequate labor also, both quantitatively and qualitatively. Forecasts of sales and production help the firm in estimating the requirements of labor for a certain period of future. These forecasts are very important for the firms, which have to train their workers before placing them on job.