Understanding the Leading Economic Index (LEI)

As an economic analyst at a wealth management firm, you are responsible for evaluating various forecasting tools to predict future economic conditions. One commonly used forecasting tool is the Leading Economic Index (LEI), which aggregates several economic indicators to gauge the future performance of an economy. As part of a presentation to your clients, you need to explain the significance of LEI in economic analysis.

Which of the following statements accurately describes the main use of the Leading Economic Index (LEI) in forecasting economic activity?