What is the delay indicator?
Economic indicators are events that provide information about the economy as a whole. They are used to analyze economic behavior and predict how the economy will operate in the near future. There are three main types of economic indicator: the same, leading and lagging. For example, the company's paycheck is the same indicators because they make payment and at the same time increase the localized economy.
The leaders are events that occur immediately before the economic shift. The state of the main stock markets is one of the main leading indicators in the global economy. The powerful stock market indicates a strengthening economy, while the weak stock market indicates an economic decline. An example of a carefully monitored lagging indicator is the country's unemployment rate. As you weaken the economy, the unemployment rate increases appropriately. For example, unemployment is an indicator of anti -cyclic lagging, because as the economy rises, unemployment decreases. AverageThe wages are a pro-cyclic indicator of lagging, because as the economy rises, wages are also increasing accordingly.
Like many topics in economics, the classification of what is and is not a lagging indicator for some debate. For example, the federal reserve system is considered a front indicator and others are a backing indicator. Looking at the data, the market responds to changing interest rates of the federal reserve, or that the federal reserve system changes interest rates only in response to the market. The federal reserve system can be displayed more realistically as a leading and focusing indicator, lagging for one market cycle and another leader.
Media is another important indicator of delay for the general economy. Stories are always reported at least a few hours after the real economic shift they indicate, and often a day or week later. For this reason, many economic advisorsIt warns against the establishment of investment decisions on information on common media media.
For obvious reasons, the lagging indicator is far from as useful for investment or predicting the economy as a leader. However, the lagging indicator can provide a great insight into the behavior of the economy and, if correctly analyzed, can be used to obtain a certain insight into possible future economy events.