- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 2. Understanding Business Cycles
- Subject 3. Economic Indicators over the Business Cycle
CFA Practice Question
Which one is generally considered to be a lagging indicator?
A. Manufacturers' new orders for consumer goods and materials
B. Manufacturers' new orders for non-defense capital goods
C. Change in the consumer price index for services
Explanation: Inflation generally adjusts to the cycle late, especially the more stable service area.
User Contributed Comments 1
| User | Comment |
|---|---|
| nmech1984 | But what about orders? As the manufacturers have already signed and ordered the goods. |