18 Sep 2026

coincident

Leading, coincident and lagging indicators

A leading indicator turns before the economy does, a coincident one at the same time, a lagging one afterwards.

Order books, permits and the yield curve tend to turn months before output does, so they lead. Employment, industrial production and the Sahm rule move with the cycle, so they are coincident. Unemployment duration and inflation typically keep moving after the turn, so they lag.

worldstat.us mixes all three on purpose: the leading ones warn, the coincident ones confirm, and the Post-trigger state keeps a signal visible after the leading series has already turned back.

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Related terms

Sahm rule · threshold · yield curve

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