A coincident indicator is a metric that shows the contemporaneous state of economic activity within a particular area. Coincident indicators do not necessarily reflect current conditions because they usually involve some data collection and reporting lag. However, they are important because they show economists and policymakers the recent past state of the economy. Coincident indicators include employment, real earnings, average weekly hours worked in manufacturing, and gross domestic product (GDP).
The reality is that in a faith-based economy (one in which there is no material standard such as gold to collateralize the currency), coincident indicators are the metrics by which the general public begin to recognize an economic shift.
Coincident indicators include the index of manufacturing and trade sales, the index of industrial production, and several others.
Why it Matters to You
Coincident indicators identify the stage where the train has already left the station. Organizations that wait for coincident indicators to drive change cannot argue that there was no sign to drive earlier action, but they are not yet behind the curve. Coincident indicators are a final call to action at the crest of the wave of change.