leading economic indicator


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Related to leading economic indicator: Index of Leading Indicators

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 economic indicator

An economic or a financial variable that tends to move ahead of and in the same direction as general economic activity. Compare lagging economic indicator. See also index of leading economic indicators.
References in periodicals archive ?
Mexico's leading economic indicator is calculated monthly by The Conference Board (New York), the source for a January 20, 2006 report distributed by Reuters.
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.
Summary: JapanEoe1/4aos Leading economic indicator rose for the fourth straight month in July, with the index rising to 83.0 from a revised reading of 80.9 in June amidst...
The NHBR/e-forecasting.com New Hampshire Leading Economic Indicator rose in June for the second consecutive month, climbing to a reading of 114.1--an increase of 0.8 percent after a similar 0.8 percent rise in May.
As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending.
The NHBR/e-forecasting.com New Hampshire Leading Economic Indicator fell again in April, falling to 112--a drop of 0.1 percent from March.
The NHBR/e-forecasting.com New Hampshire Leading Economic Indicator decreased again in March, falling to 112.8--a drop of 0.9 percent from February.
The NHBR/e-forecasting.com New Hampshire Leading Economic Indicator decreased again in February, falling to 113.8--a drop of 0.8 percent from January.
The New Hampshire Business Review/e-forecasting.com New Hampshire Leading Economic Indicator. an early bird snapshot of economic activity in the state, remained flat in April, with a reading of 119.4.
With this issue, New Hampshire Business Review introduces the NHBR/e-forecasting.com New Hampshire Leading Economic Indicator Index, measure of where the state's economy stands now and what may be in store for the future.
As a leading economic indicator of construction activity, the ABI shows an approximate nine to twelve month lag time between architecture billings and construction spending.
Based on a comparison of data compiled since the survey's inception in 1995 with figures from the Department of Commerce on Construction Put in Place, the findings amount to a leading economic indicator that provides an approximately nine to twelve month glimpse into the future of nonresidential construction activity.

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