Leading economic indicators

Also found in: Acronyms.

Leading economic indicators

Economic series that tend to rise or fall in advance of the rest of the economy.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
index of leading economic indicators rose for the sixth straight month in September, with eight of ten indicators increasing for the month, suggesting a recovery in the U.S.
The OECD leading economic indicators, the Tankan diffusion index of large manufacturers and the Cabinet Office's coincidental indicator of business conditions, as well as 10-year JGBs, are giving strong hints that the Japanese economy may be heading for a cyclical peak.
The Creighton Economic Forecasting Group has conducted the monthly survey of supply managers in nine states for more than 10 years to produce leading economic indicators of the Mid-America economy.
The latest Index of Leading Economic Indicators from Bank of Scotland predicts business investment will replace personal consumption as the engine of growth.
National Institute of Statistics (English/French) http://www.insee.fr/en/home/home_page.asp On the English home page you can search for leading economic indicators by category.
The Conference Board's Index of Leading Economic Indicators rose for the seventh time in eight months in November.
It produces the Leading Economic Indicators for the U.S., UK, France, Germany, Spain, Australia, Mexico, Japan and Korea.
August marked the fifth straight month in which there was a jump in the index of Leading Economic Indicators. However, only four of the 10 indicators showed an increase in that month.
Do corresponding charts for leading economic indicators and then compare all of your research.
Despite the fact that the Federal Reserve has lowered the federal funds rate to 1.75%, its lowest level in 40 years, the Index of Leading Economic Indicators (the measure used to gauge the future health of the economy) has declined for four consecutive months.
Financial terms are explained using familiar comparisons--the Index of Leading Economic Indicators as a monthly report card, the nation's money supply to a really big allowance, consumer confidence as driving a cyclical economic wheel, and stock sectors as music CD categories like Rock 'n Roll" or "R & B." Even the seemingly complex process of how the stock market works is made easily understood by comparisons with the way popular sport leagues work.
The Index of Leading Economic Indicators moved up a better-than- expected 0.5 percent to 109.7 following a revised 0.1 percent increase in October.

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