Ronnie05's Blog

Of Monkeys and Economic Forecasts: The Google Way

Posted in Internet and Search by Manas Ganguly on April 3, 2010

It’s tough to make predictions, especially about the future: Yogi Berra

Looks Like Google Trends and Google Insights for research may well be able to prove Yogi wrong. While it takes time to collate and analyze information on economic data, real time reports on search volumes can help improve forecasts of the current level of activity for a number of different economic time series. This especially includes automobile sales, home sales, retail sales and travel behavior. Even predicting the present is useful, since it may help identify “turning points” in economic time series. If people start doing significantly more searches for “Real Estate Agents” in a certain location, it is tempting to think that house sales might increase in that area in the near future.

Google has opened the Google trends relating to economic data series for enthusiasts to try them out and learn and help Google learn. It has been said that if you put a million monkeys in front of a million computers, you would eventually produce an accurate economic forecast. Google is out to test that premise.

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