ECONOMIC REPORT - DECEMBER 2016

Why Economic Conditions Matter for Businesses

 

Because your organization is directly impacted from improving or declining economic conditions, it is important that you monitor changes occurring in the economy.

 

Indicators of economic conditions provide important insights to your business. Your business should use indicators of economic conditions to adjust your views on economic growth and profitability.

 

An improvement in economic conditions would lead you to be more optimistic about the future and potentially invest in growth more as you may expect positive returns. The opposite could be true if economic conditions worsen. Additionally, you should monitor economic conditions to gain insight into your sales growth and profitability. A fairly typical way of forecasting growth would be to use the previous year's trend as a baseline and augment it with the latest economic data and projections that are most relevant to your products and services. For example, a company that manufactures products tied to construction would look at economic conditions in the housing sector to understand whether momentum is improving or slowing and adjust its business strategy accordingly.

 

It is our view at S6 Partners that in addition to rigorous market and competitive analysis, economic analysis and monitoring is one of the foundational analytical elements a business should endeavor to pursue and understand in an effort to more effectively respond to environmental factors often out of its control.

 

With this in mind, we have provided the following economic report. Click the button below to download.