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Economics
Leading Indicators
Economic measures that tend to change before the overall economy does.
Economists watch leading indicators to forecast what is coming. They are not perfect but give early warning signals that can help businesses and governments prepare.
They are the canaries in the coal mine — they sing before the danger arrives.
Real world: Stock market prices, new building permits, and consumer confidence surveys are leading indicators. They often turn down before a recession officially begins.
💡 Leading indicators help you see around the corner of the economy.