Leading Coincident and lagging economic indicators
Leading indicators tell of changes before the economy reacts to the changes as an whole. "Leading indicators are used as a short term predictors of an economy."(wikipedia.org)
-stock market returns
-consumer expectations
-money supply
are leading indicators
Coincident indicators change around the same time the economy changes itself, it provides current information about the current economy.
-Gross Domestic Product (GDP)
-industrial production
-personal income
are Coincident indicators
Lagging indicators are changes after the economy has changed, the lag remains a few quarters of the year.
-unemployment rate
-average prime rate charged by banks
-manufacturing trade to sales inventories
are lagging indicators
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