Seasonal Index _top_ Jun 2026

If a retailer knows that October has a seasonal index of 120 and January has an index of 60, they can stock inventory and schedule staff accordingly. This prevents the dual nightmares of stockouts during peak seasons and excess inventory gathering dust during slow periods.

If next year’s trend forecast is $500 total, you’d multiply by each index to get seasonal forecasts. seasonal index

In simpler terms, it answers the question: “How does this specific month typically perform relative to the rest of the year?” If a retailer knows that October has a

If the seasonal index for a month is 1.20 (or 120%), that month’s value is typically 20% above the average month. If it’s 0.80 (80%), it’s 20% below the average. In simpler terms, it answers the question: “How

Now each index shows the seasonal effect relative to the overall average.