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Three types of Economic Indicators


1➙ LEADING INDICATORS

useful to predict something, on the basis of some expectation trends like housing starts, durable goods orders, manufacturing orders, surveys, etc.


2➙ COINCIDENT INDICATORS

they change indicatively and simultaneously with the general economic conditions, hence they reflect the current status of the economy, e.g. current industrial production, GDP, unemployment figure, etc.


3➙ LAGGING INDICATORS

they vary after economic events have already happened, e.g. interest rates, Consumer Price index, etc.


For some of the lagging and coincident indicators, there’s a fine line between the two categorization.

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