Lagging economic indicators are statistical measures that provide insight into the past performance of an economy. These indicators typically follow changes in the economy and are used to confirm or refute trends identified by leading and coincident indicators.
Unlike leading and coincident indicators, which provide forward-looking or current information, lagging indicators are based on data that lags behind economic activity. Examples of lagging indicators include the unemployment rate, consumer price index, and corporate profits.
These indicators provide information about the aftermath of economic events and are often used to validate economic trends that have already been observed. For example, if GDP and employment levels have been rising, but the unemployment rate is still high, this would suggest that the recovery is still incomplete and that the economy may still be struggling.
Overall, lagging economic indicators provide important information about the recent past of an economy and are used by economists, policymakers, and investors to evaluate the effectiveness of past policy decisions and to make informed decisions about future economic activity.