lagging indicator
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An indicator that follows an economic event.
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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.