Lagging Economic Indicator

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.

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lagging economic indicator

An economic or a financial variable, the movements of which tend to follow the movement of overall economic activity. Thus, a lagging economic indicator would reach a peak after a peak in economic activity and would hit bottom after a bottom in economic activity. Compare leading economic indicator.