Leading indicators are economic factors that can predict future trends in a country's economy. They provide insights into where the economy is headed, helping businesses and policymakers make informed decisions. Common examples include stock market performance, consumer confidence, and manufacturing activity. These indicators are valuable because they often change before the economy as a whole does, allowing for early detection of potential growth or decline. By analyzing leading indicators, analysts can gauge the likelihood of economic expansion or recession, making them essential tools for forecasting economic conditions.