Leading economic indicators are the economic indicators that are observed at the start of a new phase of a business cycle. There are many economic indicators but there are a few that can be used reliably. The stock market is an economic indicator that can tell in which state the economy is going to enter. For example, if the stock market falls below 20% it represents a recession as the stock market will be probably becoming a bearish market.
Another important leading economic indicator is job market reports for the manufacturing sector. If the monthly reports on manufacturing jobs say that the monthly number of jobs is in a declining trend, then it can represent a recession is coming. However, it is better to understand all the indicators and their role in changing economies before relying on them.
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