Identifying Leading Economic Indicators

In a forthcoming quarterly investment committee meeting at an asset management firm, the Chief Economist has been asked to present an economic outlook based on various forecasting tools. The firm is particularly interested in the leading indicators that can provide insights into future economic performance. Consider the following three options that the Chief Economist may propose as valuable leading indicators for predicting economic turns:

1. Stock market performance metrics.

2. The Consumer Price Index (CPI).

3. Unemployment rates.

Which of the above options is considered a true leading economic indicator that can help predict future economic activity?