Leading and Lagging Indicators - How to Discuss

Leading and lagging indicators

What is the difference between leading and lagging indicators? The difference between leading and lagging indicators is that the latter can show whether a country's economy is actually growing or contracting. Some examples of leading indicators are bond yields or new-build homes. Bonds are generally safe investments with little internal risk.

What are lead and lag indicators?

Years of research have shown that a combination of leading and lagging indicators can improve a company's overall performance. Here are some specific examples: "Satisfied and motivated employees" is a leading indicator (proven) of "customer satisfaction".