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 ?
Lack of reliable, consistent relationship between leading and lagging indicator performance
Cement deliveries represent a lagging indicator for construction permits, which dropped by 11.
The unemployment rate is considered a lagging indicator.
Although real estate is largely a lagging indicator, there are market barometers that nevertheless influence real estate conditions.
In this, alas, Chicago is every bit as much a lagging indicator as it is in population.
Our oversized military thus is a lagging indicator, a sign of our weakness, not strength, and our current aggressive foreign policy stems from our need to hide our vulnerability mad to maintain our reputation as, in Secretary Albright's words, "the indispensable power.
Private spending on new construction is a lagging indicator that Hill soon enter an uptrend due to the sustained rise in corporate profits that began last year.
While economists are still leery of calling tiffs solid evidence of a self-sustained recovery in the US, it does indicate that even the labor market, a lagging indicator of any recovery, is showing signs of bottoming out.
According to Bush administration shills like Rush Limbaugh, job growth is always a lagging indicator of an economic recovery.
Since the unemployment rate is a lagging indicator (a variable used to confirm that a stage of the economic cycle has already occurred), the employment picture won't brighten until more of the forward-looking leading indicators (such as housing starts or durable goods orders) improve.
Business failures generally are considered a lagging indicator of economic conditions.
Based on those statistics, the conincident to lagging indicator ranked superior to the other sixteen indicators examined in its ability to call business cycle turning points.