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A coincident indicator is an economic indicator that measures the current state of the economy of a nation. The coincident indicator is based on employment, demand, or income levels that move up or down directly with the changes in the economy. Economists depend on coincident indicator measurements to assess the current economic performance of the country. The coincident indicator alerts governments whether they should make ad hoc changes in fiscal activities to achieve their long-term economic goals. Non-farm payrolls is a popular coincident indicator. Other examples for a coincident indicator include industrial production and personal income. Sales figures from manufacturing and trade are another source for coincident indicator assessment. Investors monitor coincident indicator announcements as they may directly impact market prices. |
