Leading Performance Indicator

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A Leading Performance Indicator is an indicator measure that quickly reflects changes in performance.



References

2018

  • https://www.investopedia.com/terms/l/leadingindicator.asp
    • QUOTE: A leading indicator is a measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators are used to predict changes in the economy, but they are not always accurate. Bond yields are a good leading indicator of the market, because investors can use them to anticipate and speculate on trends in the economy.

       Leading indicators are used to gain some sense of which way the economy is headed. Investors use them to adjust their strategy to benefit from future market conditions. Federal policymakers use them for considering adjustments to monetary policy. Businesses use them to anticipate economic conditions that will affect their revenue. In practice, leading indicators are not always accurate predictors of the future. However, when used in concert with other data, they can reveal certain trends which support the probability of changing conditions.