Effective Economic Forecasting Tool

As a portfolio manager, you are tasked with analyzing various economic indicators to forecast potential changes in the market. Recently, you came across three forecasting tools that can help you gauge economic conditions. Understanding the effectiveness of these tools is crucial for making informed investment decisions.

Consider the following forecasting tools:

1. Leading Economic Index (LEI): A composite of ten economic indicators designed to predict future economic activity.

2. Consumer Price Index (CPI): A measure that examines the weighted average of prices of a basket of consumer goods and services.

3. Gross Domestic Product (GDP): The total market value of all finished goods and services produced within a country's borders in a specific time frame.

Based on your understanding, which of the following tools is best suited for forecasting future economic activity?