Legal Definitions - economic indicator

An economic indicator is a statistical measure used to describe the state of the economy or to predict its direction. There are two types of economic indicators: leading and lagging indicators.

A leading economic indicator is an economic indicator that tends to predict the future direction of the economy. Examples of leading economic indicators include:

• Interest rates
• Stock market performance
• Consumer confidence

These indicators are used to forecast economic trends and help businesses and investors make informed decisions.

A lagging economic indicator is an economic indicator that tends to respond to the direction of the economy. Examples of lagging economic indicators include:

• Unemployment rate
• Corporate profits
• Consumer spending

These indicators are used to confirm trends that have already occurred in the economy.

Overall, economic indicators are important tools for understanding the health of the economy and making informed decisions.