Business Cycle Coincident Indicators

The previous blog gave information on the leading indicators for a business cycle. This blog gives the coincident indicators or the indicators that coincide with performance of Gross Domestic Product, GDP.

These indicators give confirmation of where we are in a business cycle. While these indicators are important from a confirmation perspective they are not as useful to an investor as the leading economic indicators.These coincident economic indicators include:

• Industrial Production
• Personal Income
• Employment
• Average Number of Hours Worked
• Manufacturing and Trade Sales
• Non Agricultural Employment
  

As GDP increases, these indicators should also increase. Conversely, if GDP decreases these indicators should also decrease. As you watch the performance of these indicators, you should see confirmation with GDP.

While this is good economic data. I follow the 4 leading economic indicators more closely for making investment decisions. Do not confuse a coincident indicator with a leading indicator.