Leading Indicator

AAA

DEFINITION of 'Leading Indicator'

A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators are used to predict changes in the economy, but are not always accurate.

INVESTOPEDIA EXPLAINS 'Leading Indicator'

Bond yields are typically a good leading indicator of the market because traders anticipate and speculate trends in the economy.

RELATED TERMS
  1. Bellwether Stock

    A stock that is believed to be a leading indicator of the direction ...
  2. Building Permits

    A type of authorization that must be granted by a government ...
  3. Economic Forecasting

    The process of attempting to predict the future condition of ...
  4. Coincident Indicator

    A metric which shows the current state of economic activity within ...
  5. Aspirin Count Theory

    A market theory that states stock prices and aspirin production ...
  6. Cyclical Unemployment

    A factor of overall unemployment that relates to the cyclical ...
Related Articles
  1. Leading Economic Indicators Predict ...
    Active Trading

    Leading Economic Indicators Predict ...

  2. Commodity Prices And Currency Movements
    Forex Education

    Commodity Prices And Currency Movements

  3. Bond Spreads: A Leading Indicator For ...
    Options & Futures

    Bond Spreads: A Leading Indicator For ...

  4. Kairi Relative Index: The Forgotten ...
    Forex Education

    Kairi Relative Index: The Forgotten ...

comments powered by Disqus
Hot Definitions
  1. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  2. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  5. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  6. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer ...
Trading Center