Thursday, June 19, 2008

Lagging Indicators


An index published monthly by the Conference Board that is used to confirm the direction of the economy’s movements in past months.
1. the value of outstanding commercial and industrial loans.2. The change in the consumer price index for services from the previous month.3. The change in labor cost per unit of labor output.4. The ratio of manufacturing and trade inventories to sales made.5. The ratio of consumer credit outstanding to personal income.6. The average prime rate charged by banks.
As it measures the economic activities of previous months, the Composite Index of
Lagging Indicators is used as an after-the-fact way to help confirm economists’ assessment of current economic conditions.

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