Leading Indicators

Leading indicators are specific data points or signs that help predict future economic trends or changes. They change before the economy starts to move up or down, making them useful for forecasting. Examples include stock market performance, employment rates, and manufacturing orders. By monitoring these indicators, economists, businesses, and policymakers can make informed decisions and anticipate potential economic shifts, helping them to plan for the future effectively. Understanding leading indicators can provide valuable insights into where the economy might be headed.