Leading Indicators – United States

US Leading Indicators is a composite index designed to forecast trends in the overall economy. The index is based on ten key indicators known to precede changes in the economy. Though the index has a less than perfect historical record, it still is a worthwhile forecasting tool. Given the high volume of economic data, the Leading Indicators Index is useful by condensing ten indicators into one value headline figure.

Headline numbers will be a percentage annual growth of the overall composite. As high values are indicative of economic growth, such figures bode well for the overall US Economy. Uncontrolled growth lead by this figure however may raise concerns about inflation and economic stability.

Note: The indicators included in the figure are (in order of decreasing weight): interest rate spread, M2 money supply, average manufacturing workweek, manufacturers’ new orders, S&P 500, average weekly unemployment claims, vendor performance, housing permits, consumer expectations and manufacturer’s new orders for non-defense capital goods.

Relevance : Rarely affects markets
Release schedule : 10:00 AM (EST); monthly, three weeks following the end of the reporting month
Source of report : Conference Board
Web Address : www.globalindicators.org
Address of release : http://www.conference-board.org/economics/indicators.cfm
Refer > US Leading Indicators
AKA : Index of Leading Indicators, LEI

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