What are Leading Indicators?
Definition of Leading Indicators: These are described as the statistics that changes before the economy does itself. Therefore, they can also be described as predictors of an economy. The returns of the stock market are regarded as a leading indicator. Generally, the market starts to fall before the economy starts declining and start improving the before the economy recovers from the decline. Other popular indicators consist of the consumer expectation index, index of the building permits and cash supply. These indicators start changing once the trend has started and the coincident indicators alter the change during the drift. The conference board issues a compound popular economic index that consists of ten indicators that are created to predict the activity in the economy of U.S. these constituents are regarded as an average worksheet of the those workers engaged in manufacturing, unemployment claims, performance of the vendor related with the delivery speed and many more.