Leading Economic Indicators (LEI) Definition
A list of around 10 economic indicators that are believed to help forecast the future direction of the overall economy. It is used by virtually all economists and analysts, and is an early warning system for inflation. The following are components of the LEI.
1. Average weekly manufacturing hours
2. Building permits
3. Interest rate spread
4. Real money supply
5. Average weekly initial claims for unemployment insurance
6. Index of consumer expectations
7. Manufacturers’ new orders for consumer goods and materials
8. Manufacturers’ new orders for nondefense capital goods
9. Stock prices
10. Vendor performance