What is a Coincident Indicator?
Coincident indicators are one example of an economic factor that can help an investor to understand the current status of a given economic climate. What sets this type of economic indicator apart from other from other factors is that the coincident indicator tends to vary directly with current trends in the economy. Along with following the same general trend of the market, the coincident indicator tends to occur more or less simultaneously with the market conditions. Many economists understand that a coincident indicator is generally based on three different aspects of the economy. Employment within the country or nation is one of the primary components. While full time employment across the board may be used as an adequate measurement, many experts tend to focus in on employment markets that are not associated with agriculture. A second example of a coincident indicator is the rate of demand for goods and services produced within the nation. When considering the total production amon
