Leading Indicator (Noun)
Meaning
One of 11 indicators for different sections of the economy; used by the Department of Commerce to predict economic trends in the near future.
Classification
Nouns denoting communicative processes and contents.
Examples
- The Conference Board's Leading Economic Index is a composite of 10 leading indicators that signal future economic activity.
- The Department of Commerce uses a leading indicator to forecast changes in the overall economy, such as a recession or expansion.
- The leading indicator for the manufacturing sector is often the number of new orders for durable goods.
- Economists closely watch the leading indicators for signs of a slowdown or upswing in the economy.
- A decline in the leading indicator for the housing market can signal a downturn in the overall economy.