Answer: Average weekly hours, manufacturing

## Explanation **Leading indicators** are economic variables that change before the overall economy changes, providing early signals about future economic activity. **Coincident indicators** change at approximately the same time as the overall economy, while **lagging indicators** change after the economy has already begun to follow a particular pattern. Let's analyze each option: **A. Change in unit labor costs** - This is typically considered a **lagging indicator**. Unit labor costs reflect the relationship between labor compensation and productivity, and these changes usually occur after economic conditions have already shifted. **B. Average weekly hours, manufacturing** - This is a **leading indicator**. When businesses anticipate increased demand, they first increase existing employees' hours before hiring new workers. Changes in manufacturing hours often precede changes in overall economic activity. **C. Employees on non-agricultural payrolls** - This is a **coincident indicator**. Employment levels typically change at about the same time as overall economic activity, reflecting current economic conditions rather than predicting future ones. Therefore, among the given options, **Average weekly hours, manufacturing (Option B)** is the most likely leading indicator for an economy.

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