Forecasting Consumer Purchases Using Google Trends

Torsten Schmidt and Simeon Vosen have done extensive research on the potential benefits of using Google TrendsÕ product search data for forecasting economic behavior. Their results point strongly to the predictive value of using Google indicators in forecasting models. Here, they provide an introduction to the Google indicators of personal consumption expenditures (PCE) and compare the performance of PCE forecasting models that use the Google data with those that donÕt. Copyright International Institute of Forecasters, 2013