leading indicators


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Leading Economic Indicator

An indicator that occurs before an economy has started moving in a particular direction and is therefore used to predict the economy's movement. For example, a reduction in the average number of hours worked by manufacturing employees is considered a leading indicator because it usually precedes an economic slowdown or a recession. Among the indicators used by the Composite Index of Leading Indicators are the change in the money supply and the number of new building permits issued for residences. Leading economic indicators are used to help predict the direction of the economy; investors and businesses can use them to make their decisions accordingly.

leading indicators

the statistical time series that past experience has shown tends to reflect later changes, and which thus can be used to forecast these changes because they precede the changes in a consistent manner and by a relatively constant time interval. For example, current birth statistics would provide a firm basis for predicting primary school admissions five or six years ahead. Leading indicators like orders for new machine tools, overtime/short-time working in manufacturing and housebuilding starts are frequently used for SALES FORECASTING.
References in periodicals archive ?
Rather, they should be seen as enhancements to, and leading indicators of, the financial measures in the plan.
3 point fall in a Kyodo News survey, while that of leading indicators was worse than a median projection of a decline of 2.
Among the 10 leading indicators, six, such as real machinery orders, were in the minus column, while five in the seven lagging indicators, including the raw material inventory index, stood on the minus side.
Those profits have provided the underpinning for the big surge in stock prices that were one of the factors captured by the index of leading indicators as reasons for projecting some economic quickening.
Consulting-Media Partnership Co-Brands State Leading Indicator have announced their development of a new economic index for the state, called the NHBR/e-forecasting.
In particular, OECD's leading indicator for the most advanced countries in the world-which tracks economic conditions six months in advance--increased 0.
The downward revision reflected a drop in machinery orders, a leading indicator of corporate capital investment.
Chart (Color) Index of leading indicators Associated Press
Recent data on net contributions of the components to indicator's monthly growth rate State Leading Indicators Metric Oct-06 Nov-06 Unemployment Claims, SA&S * percent 0.
The January index of leading indicators that show economic conditions about six months down the road was revised upward to 40.
Aligning strategy with operations and balancing the lagging indicators of finance for example, with the leading indicators of customer satisfaction, delivers a comprehensive way to drive coordinated performance across the entire business.
New Hampshire Leading Economic Indicator Recent Data on Leading Indicator's Components State Leading Indicators Stats Aug-06 Sep-06 Oct-06 Unemployment Claims, SA&S * Persons 905 907 905 Unemployment Insurance Weekly % change ** 0.