In this way, numbers that are released in smaller time increments are valuable as predictors of the larger more accurate ones. Most economic indicators have future estimates trailing out years, based on predictions, and common sense tells us that one of the more accurate ways to predict economic data is to use other data. It all seems so simple, but then we are forced to take data and revise it. Well, basic statistics tells us that with the larger samples we can use, our results will be more accurate. When we try to understand what is happening in our economy it is of the utmost importance that the numbers are correct.
Inaccurate data leads to uninformed decisions.
One of the hallmarks of the world's financial markets has been their ability to spread information almost instantaneously amongst market participants. For this reason it is sometimes important to note the market consensus. Markets provide the most efficient way of valuing many important economic variables such as exchange rates. For an analysis of trends over time, the most effective way to survey economic activity is to look at the most accurate and relevant data possible. This long run approach is very important to understanding economics as a subject, and the workings of the economy as a whole.