Definition: A leading economic indicator is a statistic that precedes an economic event. As such, it can be used to predict what will happen in the economy, and can be used to forecast a trend. Leading economic indicators are most important when the economy is reversing a trend - either coming out of a recession or heading into one.
Important Leading Economic Indicators
Also Known As: Predictor
Examples:
Interest rates are usually leading indicators for the U.S. economy because when they decline, money becomes more available, and the economy improves.
