Employment increased for the first time since March, but employment tends to be a
lagging economic indicator. Just like the new orders and backlog indices, the exports index has trended down since March 2014.
Growth of the market: Pallets are a
lagging economic indicator. Companies stop using pallets after the economy has slowed because warehouses are full of product and manufacturers are no longer running their lines full tilt.
"Employment is a
lagging economic indicator, so coming out of a recession, it is typical for jobs to be the last thing to return," said Wallace.
Unlike the unemployment rate, which is a well-recognized trailing or
lagging economic indicator, Gallup's job-creation measure -- much like jobless claims -- is more of a leading or at minimum a coincident indicator of economic performance.
''The outcome was no surprise as an unemployment rate, a
lagging economic indicator, normally continues to rise for about one year after industrial production bottoms out,'' said Takuji Aida, senior economist at UBS Securities Japan Ltd.
Real estate is a
lagging economic indicator, and it follows the job market, which has been weak for white-collar workers.
Population, however, tends to be a
lagging economic indicator, usually reaching its peak well after other economic indicators have already turned downward.
However, McDaniel said that while
lagging economic indicators such as gross receipts and unemployment reports show expansion has occurred, a few leading indicators point to a potential slowdown in economic activity.
When evaluating the health of the economy, there are both leading and
lagging economic indicators to consider.
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."
Now, according to keynote speaker Narendra Mulani, managing director for Accenture's supply chain management service line, high energy costs, environmental concerns, and
lagging economic indicators are forcing supply chain managers to bring those things a little closer to the vest through a process called "near-shoring."
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.
