Coincident Indicators

Coincident indicators mean economic data that move at about the same time as the overall economy. In simple terms, they show what is happening in the economy right now. Coincident indicators are important because they help investors and policymakers understand current economic conditions. They may include employment, income, industrial production, and sales. For example, if employment and industrial production are both rising, coincident indicators may suggest the economy is currently expanding. Coincident indicators are not usually early warning signals. They describe the current state more than the future direction.