Stat of the Day: Leading Economic Indicators Up Again
One of the most overlooked yet very important stats is the Leading Economic Indicators (LEI) produced by The Conference Board on a monthly basis. According to the January report , leading indicators were up 0.4% in January after a 0.2% rise in Decemeber. The Lagging Indicator (LAG) decereased by 0.1%. Ironically most of the media and even alot finanical reporters and anlayts focus on the lagging indicators. as they indicate what has happened in the past. They are actual hard facts about what took place in the economy while leading indicators only suggest what could happen. Unfortunately or fortunately depending on how you view it, these indicators are pretty good at predicing the future economic cycle. Money Supply and Interest Rates are 2 indicators that are typically overlooked by the gernal market. They have a huge impact on how businesses and consumers act in the future but they take a while for the indicators to have an impact on the economy and its not very tangible. As an exampl...