What is a lagging indicator?

A lagging indicator, also called a lagging business cycle indicator, is an economic measure that indicates changes in the economy after these changes have already taken place. These indicators react with a delay to economic development, making them useful for confirming trends that are already underway.

Examples of lagging indicators are unemployment figures and inflation figures. This data provides insight into the current economic situation but cannot be used to predict future changes in the economy.

English: lagging indicator.