Outdoor faucet leaking- how to fix?

[kamas]

This outdoor faucet is leaking from the handle itself cam you see it on the picture? What causes it amd how to fix it?

[kendallf]

The easiest way to fix it would be to replace it.  Home Depot, etc. will have the faucet, more properly known as a hose bib. 

Looking at your picture, it's possible that you won't be able to unscrew it without chipping the wall opening away.  If that's the case, you can probably take the valve and handle out and replace them (unscrew hex nut below handle).  You'd have to find the same brand and size (either buy another complete hose bib, or see a plumbing supply house for parts).

You'll need to turn off the main water valve before attempting either of these, of course.

[burly]

It looks like it's leaking by stem/nut?  If that's the case, the packing is just worn away.

Option 1 - tighten nut
https://www.youtube.com/watch?v=3hu6rCH7gmM

Option 2 - replace packing
https://www.youtube.com/watch?v=7jhE7AsYVyQ

Edit: better youtube video

[Le Poisson]

To add to the previous post - option 3 - replace O-ring. Sometimes the O-ring dries out and forms cracks. A new o-ring is about $0.05. When you take the faucet apart, you may as well just replace the packing, Washer, seat and O-ring. Often they come in a hit anyways.