What is a Lagging Indicator?
A lagging indicator is a financial gauge that becomes measurable only after an economic shift has taken place.
How Does a Lagging Indicator Work?
There are certain economic indicators that rely on changes in productivity or economic growth. For this reason, lagging indicators do not lend themselves to forecasting. Examples of lagging indicators include company earnings and levels of unemployment.
Why Does a Lagging Indicator Matter?
Analysts and economic policymakers measure lagging indicators to confirm or refute previous analyses and the effectiveness of policy directives.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
The average American driver spends around $850 a year on car insurance, according to data from the National...
Read More →
Americans are hardly feeling contented these days. Washington is a mess, jobs are scarce, our soldiers are in harm's way, and the weather's gone wild. But at least the United States is still the...
Read More →
Wall Street can be so predictable sometimes. A company announces an acquisition. The buyer's ...
Read More →
What do former President George H.W. Bush, former Secretary of State James Baker, former British Prime...
Read More →
