leading indicator


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.

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If you want to know that your company has really made it try and hear if anyone says you are a leading indicator.

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It was a leading indicator and we knew we had to follow that line of thinking cause it would lead everyone down a good path.

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It is important to be patient and constantly monitor leading indicators to be able to come up with investment decisions that will produce the most efficient returns.

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