We use cookies to improve security, personalize the user experience,
enhance our marketing activities (including cooperating with our marketing partners) and for other
business use.
Click "here" to read our Cookie Policy.
By clicking "Accept" you agree to the use of cookies. Read less
What is a Lagging Economic Indicator and Why Does It Matter?
Definition & Meaning
A lagging economic indicator is a type of economic measure that reflects changes in the economy after they have already occurred. These indicators are useful for confirming trends and patterns in economic activity. For example, the unemployment rate is a common lagging economic indicator, as it typically rises or falls several months after changes in the overall economy. This characteristic allows analysts to affirm whether an economic trend is ongoing or has already taken place. Lagging indicators are also referred to simply as lagging indicators.
Table of content
Legal Use & context
In legal practice, lagging economic indicators may be relevant in various contexts, particularly in cases involving economic analysis, labor law, and financial disputes. For instance, understanding unemployment rates can be crucial in family law cases regarding child support or alimony, where income levels may be affected by economic conditions. Users can manage related legal documents through tools like US Legal Forms, which provide templates for various legal situations influenced by economic factors.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
One example of a lagging economic indicator is the unemployment rate, which typically increases after a recession has begun and decreases after the economy has started to recover. Another example is the average duration of unemployment, which reflects how long individuals remain jobless after economic changes have occurred. (hypothetical example)
Comparison with related terms
Term
Definition
Key Differences
Leading Economic Indicator
An indicator that predicts future economic activity.
Leading indicators change before the economy as a whole changes, while lagging indicators confirm trends after they occur.
Coincident Economic Indicator
An indicator that moves simultaneously with the economy.
Coincident indicators reflect current economic conditions, unlike lagging indicators that confirm past trends.
Common misunderstandings
What to do if this term applies to you
If you find that lagging economic indicators are relevant to your situation, consider gathering data on these indicators to support your case or decision-making process. You can explore US Legal Forms for templates that may help you document your findings or manage related legal matters. If your situation is complex, consulting a legal professional is advisable.
Find the legal form that fits your case
Browse our library of 85,000+ state-specific legal templates.