What Is the Difference Between Leading and Lagging Indicators?
Leading indicators (also known as leading indicators) refer to the timing of the indicator relative to the fluctuations of the national economic cycle. For example, if an indicator reaches a peak or falls into the trough several months earlier than the national economic cycle, then these indicators are called leading index. These indicators provide an indication of economic conditions in the coming years.
Leading indicator
- Leading indicator ()
- A category of sensitivity indicators for macroeconomic fluctuations.
- Macroeconomic fluctuations are divided into four stages: prosperity, recession, depression, and recovery. Its changes are regular and will inevitably pass certain
- The internal connections between various economic phenomena in society are very close, as shown in
- 1. Leading indicator : It is earlier than the predicted object in the change time, that is, the peak or trough appears earlier than the predicted object.
- 2,
- 1. Find leading indicators according to predicted goals and requirements;
- 2.Draw leading indicators,
- 1. Confirm whether the accompanying relationship between indicators still exists today;
- 2. What is the change in the interval time?