Wednesday, December 22, 2010

Post 15

Leading indicators are things that change before the economy does. For example:
1.     Average weekly hours of manufacturing
2.     Average weekly initial claims for unemployment insurance
3.     Stock prices
Lagging indicators are the opposite of leading indicators; they change after the economy does. For example:
1.     Unemployment
2.     The value of outstanding commercial and industrial loans
3.     The change in labor cost per unit of labor output
Coincident indicators occur directly with the economy. For example:
1.     Income
2.     GDP
3.     Manufacturing and trade sales
Leading, lagging, and coincident indicators are all indicators of economic change. There are many examples of each indicator, but I have picked what I think are the top three.

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