Leading economic indicators are statistical measures that provide insight into the future direction of an economy. These indicators are often used by economists, policymakers, and investors to predict changes in the economy before they occur.
Leading indicators are typically forward-looking, meaning they are based on data that precedes actual economic activity. For example, stock market indices, consumer confidence surveys, and purchasing managers' indices are all leading indicators that can give insight into future economic activity.
Some other examples of leading economic indicators include building permits, which can signal future construction activity, and the number of job openings, which can indicate future hiring trends. Other leading indicators may include measures of business investment, consumer spending, and financial market trends.
Overall, leading economic indicators are an important tool for forecasting future economic activity and can provide valuable insights for individuals and organizations making decisions in the economy.