Leading Economic Indicators
a.k.a. Leading indicators
Data that tends to change direction before the overall economy does, used to forecast turning points.
In plain English
Data that tends to change direction before the overall economy does, used to forecast turning points.
Leading indicators move first: building permits, new orders, stock prices, the yield curve, consumer expectations. Lagging indicators, like unemployment, confirm what already happened.
Some are combined into composites like the Conference Board LEI. They give early warnings, along with plenty of false alarms.
Keep this word for good
Your free Private Swap Lounge saves the terms you’ve learned and quizzes you on them. Portal under construction. Expected delivery date is December 01, 2026.