leading indicator

Definition
An economic indicator that changes before the economy has changed. Examples of leading indicators include production workweek, building permits, unemployment insurance claims, money supply, inventory changes, and stock prices. The Fed watches many of these indicators as it decides what to do about interest rates. There are also coincident indicators, which change about the same time as the overall economy, and lagging indicators, which change after the overall economy, but these are of minimal use as predictive tools.




leading indicator is ...
... part of the
Economy subject.


Related Terms

coincident indicator -  More
lagging indicator -  More
market cycle -  More


leading indicator appears in the definitions of these other terms on BusinessDictionary.com

Loading...





Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z