Leading indicators are economic or financial metrics that provide insights into the future direction of an economy or market. Unlike lagging indicators that confirm trends that have already occurred, leading indicators are forward-looking and aim to predict potential changes in economic activity or asset prices.

These indicators are valuable tools for analysts, policymakers, and investors to make informed decisions and anticipate future trends. Common examples of leading indicators include stock market performance, consumer confidence surveys, purchasing managers' index (PMI), building permits, and new jobless claims.

For instance, a rise in the stock market may indicate investor optimism and predict economic growth, while a decline in consumer confidence might signal a potential economic downturn as consumers become cautious about spending. By monitoring leading indicators, stakeholders can better understand the overall economic health and take appropriate measures to mitigate risks or capitalize on emerging opportunities.