lagging indicator

Frequency: 4.51.2 per million words

An indicator that follows an economic event.

Categories:

Examples (10)

  • The unemployment rate is a classic lagging indicator of economic health.
  • Economic downturns are usually confirmed by various lagging indicators.
  • Corporate profits are often a lagging indicator, reflecting past performance.
  • Analysts use lagging indicators to confirm long-term trends, not to predict them.
  • Inflation rates sometimes act as a lagging indicator after periods of high demand.
  • Gross Domestic Product (GDP) is considered a key lagging indicator for economic output.
  • Policymakers often review lagging indicators to evaluate the effectiveness of past interventions.
  • While leading indicators forecast, lagging indicators provide retrospective confirmation.
  • The duration of unemployment is another important lagging indicator to consider.
  • Do not mistake a coincidence for a lagging indicator; correlation isn't causation.