Leading indicators

CFA Level III
#1

“The composite of leading economic indicators is based on an analysis of its forecasting usefulness in past cycles”.

This is part of one of the correct answers. How’s this correct? Leading indicators are based on past cycles? I thought they were forward looking?

#2

Where is this from?

#3

“Ptolemy” case in a mock

#4

From past cycles, you know that they work and which one forecasts what.

#5

thanks!