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Done. Over the past. Lagging indicator

Published August 12th, 2008 in Uncategorized

A lagging indicator is an economic indicator that reacts slowly to economic changes, and therefore has little predictive value. Generally these types of indicators follow an event; they are historical in nature. For example, in a performance measuring system, profit earned by a business is a lagging indicator as it reflects a historical performance; similarly improved customer satisfaction is the result of initiatives taken in the past.
Lagging indicators demonstrate how well an economy has performed in the past few months, giving economists a chance to review their predictions and make better forecasts.

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