leading economic indicators

Leading economic indicators are specific statistics that predict future economic activity. They help economists and policymakers gauge the direction of the economy before it actually changes. Common examples include stock market performance, new housing starts, and consumer confidence. When these indicators show improvement, it often suggests that the economy may grow soon. Conversely, if they decline, it can indicate a potential economic slowdown. By analyzing these indicators, businesses and governments can make informed decisions to prepare for future economic conditions.