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Community indicators are "measurements that provide information about past and current trends and assist planners and community leaders in making decisions that affect future outcomes". They provide insight into the overall direction of a community: whether it is improving, declining, or staying the same, or is some mix of all three.
In essence, indicators are measurements that reflect the interplay between social, environmental, and economic factors affecting a region’s or community’s well-being. Community indicators projects typically are conducted by nonprofit organizations within a community, although in some cases they are initiated by the public sector.