Economic Indicator Forecasting by Banks: Why and how

Hi, I'm wondering if anyone knows the details behind the forecasting of Economic indicators? If I'm not mistaken, all the banks make their forecasts and then Bloomberg. Reuters or someone takes the average of all the forecasts and that's the number we see in the economic calendar? That brings up another question: Why do all these banks create the forecasts and how? Thanks!

Disclaimer: I'm an ex-Bank trader so my opinions may be a little jaded or cynical against the profession that I left behind. I don't trust economic indicators and I trust forecasts even less. But I do trust the market's REACTIONS to them tho....

Banks create the forecasts to provide fodder for their customers, as represented by analysts and other report-preparers in the preparation of "reports" and "analysis" to "assist" top management of businesses in making relevant forecasts of future business trends and flows... for the onward consumption of their (the businesses') shareholders.

If Banks didn't HAVE to create these pesky forecasts, believe me... they won't. They only do it because it's good customer service. It establishes "street cred" and makes a good side income from subscriptions (in some cases).

How they create the forecasts? The same way equity analysts do it (from my prior observation). I believe there are numerous literature on this aspect of the subject.

Skenobi hit it right on the mark. Firstly, don't bother with economic indicators. Banks only make them in order to make more money off subscriptions. These economic indicators take into account many many many different things depending on who is making the forecast. Yes, "things" is vague, but I said it intentionally. There is no defined logic of what comprises an economic forecast. A lot of big banks actually kill birds and read their entrails for Forex signs, just like the Romans did. Just kidding, the Romans didn't have Forex way back then.

Yes, you are an older member, and everyone likes telling people how whatever they are pursing is a terrible idea, but take my advice: economic indicators are a money sucking rabbit hole. Successful trading isn't contingent on subscribing to big banks' forecast/fortune-telling department.

Don't get me wrong though... economic indicators are not entirely useless. They're useful for macro economic analysis and (maybe, just maybe) to traders with a more longer-term outlook. Whether they're useful to shorter-term day traders is open to debate, and the arguments for/against that is well-documented in this Forum.

It's the FORECASTS (of FUTURE indicator readings) made by Banks (as opposed to by accredited economists with no vested interests, who don't really exist anymore) that are the topic of this thread.

The question asked was WHY the forecasts were created and HOW, and for my part I have given my two cents on the matter.

Out of respect to the OP, maybe we should stick to the topic and not argue too much about whether economic indicators are pointless. We all mean well.

if the indicator is made by survey, they actually pick which one to survey, so the number it self is biased.
but then again survey says, most money are held by 15% of the world population, or 5%, and only 1% are considered very rich
and i bet they all have bank account.