Financial encyclopedia

Economic trends are unpredictable and changeable. We can still try our best to grasp the future economic trends through "leading indicators".

What are the leading indicators?

Leading Economic Indicators, also known as leading indicators, mainly predict the future prosperity direction and economic performance, and their data are not only good or bad.

Representing the economic trend of the United States itself will also affect the global economy. By observing the trend of leading indicators, investors can take the lead before the economy changes.

Seize the opportunity

LEI (commonly referred to as LEI) is compiled by 10 leading economic indicators in the United States, some of which are different from the actual economy.

Indicators show a reverse change relationship. Only by knowing which data the change is caused by can we correctly judge the future trend of the economy. The 10 indicators are:

1. Average weekly working hours of manufacturing employees
2. Number of new recipients of unemployment benefits
3. New manufacturing orders–consumer goods and related raw materials
4. New orders for manufacturing industry–excluding non-defense capital assets of aviation.
5.ISM new order
6. Building Permit-Number of new private housing units
7.S&P 500 stock price index
8. Leading credit index
9.10-year U.S. debt and federal funds interest rate spread
10. Average expectations of consumers for future prosperity

Most of the indexes included in the leading indicators reflect the source of the economy, so they can predict the trend of the economy. Of course, the leading indicator is definitely not

It is completely accurate and cannot be completely relied on, but it can be used as an auxiliary basis for investment decisions.