LINCOLN, Neb. (KLKN) — Nebraska’s leading economic indicator grew only marginally by 0.06% in June, according to the latest report from the UNL.
This is the slowest since December.
“So this suggests that Nebraska’s economy, after showing solid growth so far in 2023, will slow down later this year,” said UNL economics professor Eric Thompson.
The indicator aims to predict economic activity six months in the future.
It takes into account several components, such as business expectations, single-family home building permits, airline passenger numbers, and initial jobless claims.
“As the economy slows, there is a risk that it will slip into recession,” Thompson said. “Or we could have slower economic growth but keep growing.”
He said slower growth could mean fewer opportunities for workers.
“For the second straight month, we saw an increase in initial jobless claims,” Thompson said.
But he said slower growth doesn’t always mean a recession and there may be some benefits.
“We are in a period of higher inflation,” he said. “Perhaps one benefit of slightly slower growth is that it can help efforts to lower inflation.”
According to the indicator, despite the overall result, three components of our economy have improved. These are business expectations, production times and flight passenger numbers.
“The big question for me is, is there a slowdown of that kind within a month or will this trend continue?” Thompson said.
The July indicator is expected to be released in the second half of August.
airline passengers, building permit, business expectations, economic growth, Eric Thompson, inflation, leading economic indicator, manufacturing hours, Nebraska’s economy, Nebraska’s leading economic indicator, unemployment, unemployment benefit, Initial jobless claims, unemployment insurance, UNL Economic Report, UNL economics professor Eric Thompson
Comments are closed.