Why do you think the index of consumer expectations for business conditions is a useful leading indicator of the macroeconomy? (See Table 12.2.)

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Table 12.2 Indexes of economic indicators A. Leading Indicators 1. Average weekly hours of production workers (manufacturing) 2. Initial claims for unemployment insurance 3. Manufacturers' new orders (consumer goods and materials industries) 4. Institute for Supply Management Index of New Orders 5. New orders for nondefense capital goods 6. New private housing units authorized by local building permits 7. Yield curve: spread between 10-year T-bond yield and federal funds rate 8. Stock prices, 500 common stocks 9. Leading credit index 10. Index of consumer expectations for business conditions B. Coincident Indicators 1. Employees on nonagricultural payrolls 2. Personal income less transfer payments 3. Industrial production 4. Manufacturing and trade sales C. Lagging Indicators 1. Average duration of unemployment 2. Ratio of manufacturing and trade inventories to sales 3. Change in index of labor cost per unit of output 4. Average prime rate charged by banks 5. Commercial and industrial loans outstanding 6. Ratio of consumer installment credit outstanding to personal income 7. Change in consumer price index for services