Business confidence dropped sharply in Nebraska during June, according to the latest monthly survey from the Bureau of Business Research at the University of Nebraska-Lincoln.
Nebraska business confidence stood at 100.3 in June, based on responses to the Survey of Nebraska Business. This is at the neutral value of 100 and is down sharply from 113.2 in May.
“The June drop in business confidence is a concern if it is sustained in future months,” said Eric Thompson, an economist who serves as Bureau director. “
Absent strong business confidence, Nebraska’s economy is vulnerable to weakness in its key agricultural sector.”
There was also a modest drop in consumer confidence. Responses to the June Survey of Nebraska Households indicate that consumer confidence fell to 104.4 during the month, above the neutral level of 100.0 but below the May value of 105.3.
Eighteen percent of responding households indicate that the general cost of living is their top financial issue while 16 percent choose taxes. Thirty percent of businesses choose customer demand as their top business issue. However, as in most recent months, competition in the product and labor markets also are top concerns. Twenty-one percent of businesses choose labor availability as their top concern and 16 percent choose competition with other businesses. Nine percent of responding businesses report flooding or weather as their top issue, showing how spring flooding is continuing to impact the state economy.
The surveys are sent each month to 500 randomly selected Nebraska businesses and households. During June, 86 businesses responded to the Survey of Nebraska Business, for a response rate of 17 percent. There were 126 responses to the Survey of Nebraska Households, for a response rate of 25 percent.