The classic example of a leading indicator would be the housing market, where developments in housing tend to precede developments in the rest of the economy, expanding before more wide spread economic growth, and contracting before economic recession.

Other examples of leading indicators include inventory rations, machinery orders, stock prices, average manufacturing workweek and housing permits.

Leading Indicator Index

A number of countries also offer a Leading Indicator Index, which brings together a number of economic indicators that tend to precede the rest of the economy. Although many indices have a less than perfect historical record, and often the components of leading indicators are know in advance of the indicator release - it still is a worthwhile forecasting tool and used by central banks and analysts.

See Leading Indicators for the United States, Japan, Canada and Switzerland.

Learn More About How Economics Move Markets

Economic Reports by Country United States | Euro-Zone | Japan | United Kingdom | Canada | Switzerland | Australia | New Zealand

Economic Reports by Release Type Balance of Payments | GDP & Output | Conf & Sentiment | Prices, Wages & Spending | Monetary Policy | Housing | Employment

• lagging indicator
• coincident indicator