Some common examples of lagging indicators are unemployment rate.
The unemployment rate is a lagging indicator because employment tends to increase or decrease following broader economic shifts.
Employers are often hesitant to hire new staff until they are confident in the economy, sustained growth, and similarly reluctant to lay off workers until they are sure of a prolonged downturn.
Consumer price index or CPI. Inflation as measured by CPI is a lagging indicator because prices for consumer goods and services tend to rise or fall after economic activity has increased or decreased. Inflation reflects how previous economic conditions have affected the cost of living rather than predicting future economic conditions.
GDP. GPD growth is a lagging indicator as its summarizes economic activity after dead has occurred.
It takes time to collect, compile, and analyze the data, meaning GDP reports reflect past periods economic conditions.
Thus, while GDP provides a comprehensive overview of an economy's performance, it does so retrospectively.
