Leading, Lagging and Coincident indicators

We have just started on an assignment showing the United States current economy and decide on possible solutions to the situation. In order to figure out this solutions, we need to look at 3 economic indicators, which are leading indicator, lagging indicator and coincidence indicator. These indicators can be used to predict future economic trends and future financial. Firstly, the leading indicator is showing the changes in the economy before the economic activity occurs. This helps the economist to see the “future” of the economy by using data they currently have. On the other hand, Lagging indicator shows the changes that happen after the economic activity. These 2 indicators are important for the economist because it shows some improvement in the economic activity. Coincident indicators occur at approximately the same time as the conditions they signify.

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2 Comments »

  1. Peter Anthony said

    Pat, using these ideas and the data that you have, how would you describe the state of the US economy as given to you?

  2. […] Leading, Lagging and Coincident Indicators […]

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