Procyclic
A condition of positive correlation between the value of a good, a service or an economic indicator and the overall state of the economy. In other words, the value of the good, service or indicator tends to move in the same direction as the economy, growing when the economy grows and declining when the economy declines. Investopedia Says:
Some examples of procyclic economic indicators are GDP, labor and marginal cost. Most consumer goods are also considered procyclic, because consumers tend to buy more discretionary goods when the economy is in good shape.
Economic indicators can have one of three different relationships to the economy: procyclic, countercyclic (indicator and economy move in opposite directions) or acyclic (indicator has no relation to the health of the economy). Related Terms:
Bureau Of Labor Statistics - BLS
Business Cycle
Counter-Cyclical Stock
Cyclical Stock
Discretionary Income
Economy
Gross Domestic Product - GDP
Indicator
Job Openings and Labor Turnover Survey - JOLTS
Macroeconomics |