In terms of the
lagging indicators, Munn note that ANGE saw just seven accidents that qualified as LTIs in 2016, across 50 million manhours of operations.
Not surprisingly, many employers have implemented safety incentive programs that focus exclusively on
lagging indicators because it is easier to identify them and administer those programs.
Executives have been conditioned to believe that
lagging indicators alone will help them make better decisions.
Among the nine component leading indicators, seven were in negative territory, while six of the seven component
lagging indicators were negative, the Cabinet Office said.
This study of cyclical indicators found: (1) the composite indexes contain more reliable turning point information than most of the individual indicators; (2) the Commerce Department's composite index would benefit by some component substitutions; (3) the ratio of the coincident to
lagging indicators is more reliable in calling business cycle turning points than the composite of leading indicators, but that ratio has a poor track record in calling growth cycles; and (4) most of the individual components of the composite index of leading indicators signal growth cycle turning points better than business cycles turning points.
The diffusion indexes of leading, coincident, and
lagging indicators are published in the Survey of Current Business.
Composite Indexes of Leading, Coincident, and
Lagging IndicatorsThe index of
lagging indicators, measuring economic performance in the recent past, decreased to 86.
The scorecard uses leading and
lagging indicators as one overall enterprise blend.
Among the 11 component leading indicators, seven were in negative territory, while five of the eight component
lagging indicators were negative, the Cabinet Office said.
