Lagging indicators are metrics that reflect the performance of an economy or business after changes have occurred. They provide insights into trends and patterns, helping analysts understand the effectiveness of past decisions. Common examples include unemployment rates, gross domestic product (GDP), and corporate earnings. These indicators are useful for confirming long-term trends but are not effective for predicting future movements. Since they are based on historical data, they can help businesses and policymakers assess the impact of their strategies and make informed decisions moving forward.