What is LAGGING INDICATORS?

Financial market, economic indicators that only change following economic change to a new trend or pattern. Usually six months precedes a shift in these indicators, trailing behind the overall economic cycle versus moving with it (contrast coincident indicators) versus moving ahead of it (contrast leading indicators). The unemployment rate, outstanding consumer and business loans, business spending and profits, business inventories book value, unit labor costs, and consumer price index (CPI) are all major lagging indicators.

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