New method improves accuracy of German production index, impacting economic forecasts.
The German monthly production index is a key tool for understanding the economy's ups and downs. However, it's tricky to interpret because of things like seasonal changes and vacation effects. To make sense of the data, researchers came up with a new way to adjust for these factors. By using a more flexible model that can change over time, they were able to get more accurate results. This means we can now rely on the adjusted numbers to give us a clearer picture of how the economy is doing.