Comparing the Point Predictions and Subjective Probability Distributions of Professional Forecasters

We use data from the Survey of Professional Forecasters (SPF) to compare point predictions of gross domestic product (GDP) growth and inflation with the subjective probability distributions held by forecasters. We find that most SPF point predictions are quite close to the central tendencies of forecasters' subjective distributions. We also find that the deviations between point predictions and the central tendencies of forecasters' subjective distributions tend to be asymmetric, with SPF forecasters tending to report point predictions that give a more favorable view of the economy than do their subjective means/medians/modes.