Measurable economic performance factors. Changes in any factor traced predicts changes in the underlying economic cycle’s particular direction or trend. They forecast forthcoming overall economy patterns as these statistics precede by one to 12 months other economic activity changes. Durable goods orders, plant and equipment orders, building new housing, raw material price changes, corporate profits and share prices, business formation and failures, and money supply (M2) are all major leading indictors.

More On This Topic

Link to This Definition
Did you find this definition of LEADING INDICATORS helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary