World map with countries on Leading indicators are those indicators that tend to move in anticipation of turning points or changes in general economic conditions or the business cycle. That is to say, a variable that consistently reaches its peak or its trough prior to the peak or trough in the business cycle can be reliably used to forecast an upcoming high or low point in the business cycle. Business confidence and anticipated profits, interest rates, changes in the money supply, building permits, housing starts, and automobile sales are examples of leading economic indicators. Coincident indicators are those indicators that tend to move with, or within a month or so of, the turning points or changes in the general business cycle.
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Thus a variable that consistently reaches its peak or its trough economic indicators 225 at about the same time as the peak or trough in the general business cycle can be used to monitor the high and low points in the business cycle. Industrial production, unemployment data, real weekly earnings, and the number of hours worked are examples of coincident economic indicators. Lagging indicators are those indicators that tend to move after the turning points or changes in general economic conditions or the business cycle have occurred. World map with countries 2016.
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