Nebraska’s leading economic indicator rose slightly in June, according to the latest report from the University of Nebraska-Lincoln. The indicator, which aims to forecast economic activity six months into the future, rose by 0.68%.
“The surge in June followed a decline in the indicator in May, pointing to slow economic growth in Nebraska over the next six months,” said economist Eric Thompson, director of the Bureau of Business Research and CH Nelson Professor of Economics.
The six components of Nebraska’s leading economic indicator include business expectations, single-family home building permits, airline passenger count, initial jobless claims, value of US dollars and hours worked.
The leading indicator improved mainly for two reasons. First, in June there was an increase in hours worked.
“Necessary goods like food processing make up a large portion of Nebraska’s manufacturing industry, which means demand will continue even if national economic growth slows,” Thompson said.
Second, Nebraska businesses remain confident about the future. Respondents to the June Survey of Nebraska Business reported plans to increase sales and employment over the next six months.
“The small businesses that participate in the Survey of Nebraska Business continue to see opportunities for expansion despite rising interest rates, supply chain issues, high energy prices and other challenges facing the Nebraska economy,” Thompson said.
Read the full report and a technical report describing the indicators.
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