Stock Market Investors » Glossary of Stock Terms » What is a Leading Economic Indicator?

What is a Leading Economic Indicator?

When there are changes in the economic conditions, before they are really observed a leading indicator can be applied in order to make a measurement. As a result many experts use leading indicators to make predictions about the future trends in the economy. However, these estimations are not of great accuracy. Examples of leading indicators include:

Building permits
Unemployment claims
Money supply

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