What does indicator mean?
An indicator is anything that provides evidence about the presence, condition, direction, or level of something else. It may be a physical signal, such as a warning light or gauge; a visible sign, such as a symptom; or a statistic used to describe economic or social conditions. The word is especially common in business, finance, science, and public policy, where indicators help people monitor change and assess trends. In general use, “an indicator of” can introduce a clue that suggests what is true: rising temperatures may be an indicator of climate change, while declining sales may indicate weakening demand. The word’s extended meaning—from a physical pointer to an abstract sign—makes it useful whenever a particular observation is used to reveal a broader condition. An indicator does not always prove what it suggests, but it offers evidence that something may be present or changing.
nounA sign, signal, or instrument that shows the presence, condition, level, or direction of something. In economics and finance, an indicator is a statistic used to assess a broader condition or trend.
- A device, sign, or signal that shows the presence, condition, level, or direction of something.
- A sign or piece of evidence that suggests a particular condition, situation, or conclusion.
- A person, organization, or bodily indication that points to the presence or nature of something.
- A statistic used to describe or assess an economic, financial, or social condition.
"The dashboard's warning light is an indicator that the engine temperature is too high."
"Rising unemployment is an early indicator of a downturn in the economy."
"Her flushed face was an indicator that she was uncomfortable with the question."
The plural is standard when referring to several signals, symptoms, devices, or economic and financial measures.
"Inflation, unemployment, and consumer confidence are important economic indicators."
From Latin for “pointer,” an indicator does what its ancestor did: point out the state of something.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Etymology of indicator
The English word derives from Latin indicāre, “to point out” or “show,” which comes from index, meaning “pointer” or “indicator.” The same Latin root underlies English forms such as indicate, indication, and indicative. Over time, the word developed from the idea of physically pointing toward something to the broader sense of providing a sign or signal.
Related word forms
How indicator is actually used
The term is formal and broadly neutral. In technical and financial contexts, it often refers to a measurable statistic or signal used to track a condition or trend.
Easily confused with indicator
An indicator is an observable signal or instrument, whereas an indication can also be an inference, suggestion, or piece of evidence suggesting something is the case.