What this release is
The Conference Board’s Leading Economic Index, or LEI, measures the month over month change in a composite index designed to forecast the future direction of the United States economy. This business sector indicator, published by conference-board.org, provides an early look at potential shifts in economic activity.
Forex traders monitor the Leading Economic Index for insights into the overall health and trajectory of the US economy. A robust or weakening outlook, as suggested by the LEI, can influence expectations for future monetary policy decisions by the Federal Reserve, which in turn impacts the US dollar. After past releases, significant changes have sometimes correlated with shifts in market sentiment regarding economic growth prospects.
The market typically focuses on the headline month over month percentage change in the Leading Economic Index. Revisions to prior months’ data can also draw attention, as they refine the historical picture of economic trends. Released monthly, this report provides a timely update on forward-looking economic conditions, often prompting market participants to adjust their short-term outlooks.