Leading indicators are indicators that change before the economy changes.
1.) stock market returns.
2.) average hours of manufacturing.
3.) Average unemployment claims for insurance.
Lagged economic indicator is one that does not change direction until a few quarters after the economy does.
1.) Unemployment rate starts to change and tends to increase after the ecomomy starts to
2.) The value of industrial and commercial loans.
3.) The ratio of manufacturing and trade inventories to sales
Coincident indicators change at approximately the same time as the whole economy
1.) Number of employees on a non-agricultural payrolls.
2.) Personal income less transfer payments.
3.) Industrial production.
Leading/coincident/lagging indicators are categories that are based on their usual timing in relation to the business cycle.