The barometric method constructs an index of relevant economic indicators to forecast future trends. It uses leading, coincidental, and lagging indicators. Leading indicators precede business cycle turning points, coincidental indicators move with the business cycle, and lagging indicators follow turning points. For example, development and allotment of land by an authority leads to higher demand for construction materials and later, increased housing loans. However, barometric forecasting is only 80-90% accurate in predicting business cycle turning points.