Leading and Lagging Indicators. Leading Indicators Definition: An indicator that predicts future events and tend to change ahead of that event. Sometimes.

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Presentation transcript:

Leading and Lagging Indicators

Leading Indicators Definition: An indicator that predicts future events and tend to change ahead of that event. Sometimes used as a predictor. The Federal government watches unemployment rate, money supply, production, etc. (all leading indicators), to decide what to do about the interest rates. There is a link between the rate of hand washing (leading) and infections (lagging). VCH monitors children with lesions, spider bites, cellulitis in children since these often predict MRSA. Leading health indicators are: physical activity, weight, tobacco use, substance abuse, mental health, immunizations, etc. These tell us the health of our nation.

Lagging Indicators Definition: An indicator that follows an event. Previous example of infections (lagging) caused by hand washing rate (leading). Unemployment rate (lagging) indicates that the economy has been doing poorly. Patients with ventilator acquired pneumonia signifies that we may not have done followed the necessary precautions for the patients. Financial statements are lagging indicators. The show the result of spending.