Which of the following is considered an external factor impacting forecasts?

National economic trends are indeed an external factor impacting forecasts because they originate outside of a specific business and can have far-reaching effects on consumer behavior, spending, and overall market conditions. Economic trends such as inflation rates, unemployment levels, gross domestic product growth, and consumer confidence are key indicators that businesses monitor to predict future sales and market demand.

These trends influence the purchasing power of customers and can lead to shifts in demand for products or services. For example, during a recession, consumers may cut back on discretionary spending, which would impact sales forecasts. Conversely, during periods of economic growth, businesses may expect increased consumer spending, affecting their projections positively.

In contrast, factors like staff resources, facility characteristics, and merchandise are internal to the organization and can typically be controlled or modified by management, making them less relevant when considering external influences on forecasts. Understanding and monitoring external factors, like national economic trends, allows businesses to make more informed and strategic decisions regarding planning and resource allocation.