lagging indicator

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Lagging Indicator

Statistics of economic performance that follow other indicators. Lagging indicators are used to confirm a previous economic trend. For example, an increase in job creation and a fall in the unemployment rate are considered lagging indicators of economic recovery. That is, they occur after other indicators of recovery, such as GDP growth. As such, job creation and lower unemployment show that the GDP growth has been, and will likely continue to be, sustained. See also: Leading indicator, Coincident indicator.

lagging indicator

a run of statistical data that past experience has shown tends to reflect earlier changes in some related area of the economy and can thus be forecast from information about these changes because they follow the changes in a consistent manner and by a relatively constant time interval. For example, unemployment and company bankruptcies’ statistics both tend to change after a lag as a result of changes in economic activity as measured by changes in GROSS NATIONAL PRODUCT and thus can be forecast from changes in GNP See LEADING INDICATOR, FORECASTING, TIME-SERIES ANALYSIS.
References in periodicals archive ?
In a global threat assessment report submitted to the Senate Select Committee on Intelligence, Director of National Intelligence James Clapper said, "The leadership transition in Beijing continues to unfold as Chinese leaders grapple with a confluence of domestic problems -- including lagging economic indicators, corruption and pressure for political reform -- that are fueling fears about the potential for serious domestic unrest.
Other lagging economic indicators, such as employment and capital (business) spending, are often mistakenly viewed as primary economic drivers that deceive the unwary into remaining positive well past the peak in the economy or remaining pessimistic well beyond the trough.
org composites of leading, coincident and lagging economic indicators Sublease.
The Cabinet Office also said the indexes of leading and lagging economic indicators were below 50% in the reporting month, the first time since October 1998 that all three indexes have been below the 50% line.
Japan's index of lagging economic indicators for August has been revised upward to 50.
The concept of the project was to develop a system of leading, coincident, and lagging economic indicators for the major industrial countries which would be comparable to those already developed for the United States.
Meanwhile, the latest report on leading and lagging economic indicators reinforced the idea that the Federal Reserve may not have many rate hikes up its sleeve in the near future.
At the same time, however, the EPA revised upward the indexes for the coincident and lagging economic indicators.
The downgrade to 'A-' is based on the city's weakened fiscal position and reduced financial flexibility over the last three fiscal years, continual reliance on nonrecurring revenues generated largely from the recent sale of the Water Pollution Control Authority (WPCA), and lagging economic indicators.
The Rating Outlook, revised to Negative from Stable last month, reflects the city's weakened financial position, continued reliance on nonrecurring revenues, and lagging economic indicators.