Series 79: Leading Indicators

Leading Indicators

Leading economic indicators are indicators that tend to change in advance of changes in the economy as a whole and that, therefore, have (or are believed to have) predictive value. When leading indicators show weakness, the economy may be heading for recession; when they improve, a recovery or expansion may be on the horizon. The main leading indicators include the following:

• • The Department of Labor’s monthly employment report, including average hours worked per week
• • Initial applications for unemployment
• • New manufacturing ord