Economic Indicators

An economic indicator is a variable that provides information on the state of the overall economy.

Economic indicators are often classified according to whether they lag, lead, or coincide with changes in an economy’s growth.

Leading economic indicators have turning points that usually precede those of the overall economy. They are believed to have value for predicting the economy’s future state, usually near-term.

Coincident economic indicators have turning points that are usually close to those of the overall economy. They are believed to have value for identifying the economy’s present state.

Lagging economic indicators have turning points that take place later than those of the overall economy. They are believed to have value in identifying the economy’s past condition.