Using new housing construction data as a predictor of construction equipment sales is an example...

Causal forecasting methods, also known as regression analysis, use the relationship between a dependent variable and one or more independent variables to predict future outcomes. In this case, new housing construction data (independent variable) is used to predict construction equipment sales (dependent variable). This method assumes that changes in housing construction will directly impact the demand for construction equipment.

References:

Makridakis, S., Wheelwright, S.C., & Hyndman, R.J. (1998). Forecasting: Methods and Applications. John Wiley & Sons.

Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson.