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Leading Economic Indicators

The list of Leading Economic Indicators [1] is a monthly index of ten selected societal signs that are intended to provide an accurate prediction of economic activity over a future period of roughly six to nine months. Formerly, the indicators were compiled by the United States Department of Commerce, but they are now released privately.

These indicators cover a broad scope of the financial picture, ranging from unemployment to industry, and from construction to the stock exchange [2]. For example, the Leading Economic Indicators list tracks the number of initial jobless claims in the United States. It also measures the amount of new manufacturing orders for capital [3] goods, counting them as long as they are not related to the Department of Defense. The list also includes the number of building permits authorized, and the current level of the S&P 500 market index.

From these indicators, and others like them, the economic climate and growth for the coming half year is estimated.