Leading indicator

A lead­ing indi­ca­tor is a mea­sur­able fac­tor that tends to change before the broad­er econ­o­my or project per­for­mance shifts, mak­ing it a use­ful tool for pre­dict­ing future trends. These indi­ca­tors can help orga­ni­za­tions and deci­sion-mak­ers iden­ti­fy poten­tial oppor­tu­ni­ties or chal­lenges ahead of time, allow­ing for proac­tive plan­ning and strat­e­gy adjust­ments. Exam­ples of lead­ing indi­ca­tors include new orders, inven­to­ry lev­els, and con­sumer con­fi­dence indices.