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lagging indicator

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Financial Dictionary

Lagging Indicator

A measurable economic factor that changes after the economy has already begun to follow a particular pattern or trend.

Investopedia Commentary

Lagging indicators confirm long-term trends, but do not predict them. Some examples are unemployment, corporate profits, and labor cost per unit of output. Interest rates are another good lagging indicator rates change after severe market changes.

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Economic Indicators to Know

See also: Business Cycle, Coincident Indicator, Cyclical Unemployment, Interest Rates, Leading Indicator, Moving Average, Relative Strength Index - RSI, Structural Unemployment

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