Leading Economic Indicator

The Leading Economic Indicator System (LEIS) involves the study of the behavior of indicators that consistently move upward or downward before the actual expansion or contraction of overall economic activity. The system is based on an empirical observation that the cycles of many economic data series are related to the cycles of total business activity, i.e., they expand in general when business is growing and contract when business is shrinking.

The LEIS was institutionalized to provide advance information on the direction of the country’s economic activity/ performance in the short run.