Lagging Economic Indicator Law and Legal Definition

Lagging economic indicator is an economic indicator that tends to change only after a few months from the period of change of the economy as a whole. The significance of a lagging economic indicator is its capability to affirm that a practice is occurring or about to occur. An example of a lagging economic indicator is the unemployment rate. The employment tends to increase two or three moths after an uptrend in the general economy. It s also called as lagging indicator.