Some common examples of coincident indicators are industrial production.
Industrial production is a coincident indicator because it measures the output of the industrial sector, including manufacturing, mining, and utilities in real time.
Changes in industrial production directly correlate with the current state of economic activity rising as the economy expands and falling during contractions.
Personal income. Personal income levels change in tandem with economic conditions, making it a coincident indicator.
As businesses generate more revenue during economic expansions, wages and salaries tend to increase.
Conversely, during downturns, personal income levels may stagnate or decline as companies reduce hours, freeze hiring, or layoff employees. Note that wages are typically paid based on the number of hours worked.
They're often associated with manual, clerical or technical labor.
Salaries are a fixed amount of money paid to employees for their work, typically quoted on an annual basis.
Salaries are common in professional, managerial, or administrative positions.
Retail sales. Retail sales data provide immediate insights into consumer spending, which constitutes a significant portion of economic activity.
Therefore, retail sales are considered a coincident indicator as they reflect consumer's current willingness and ability to spend directly correlating with the overall economic performance at the time the data are collected.
