Economic growth will improve at the end of 2017, according to the most recent leading economic indicator report from the University of Nebraska-Lincoln.
The indicator, a composite of economic factors that predict economic growth six months into the future, rose by 2.75 percent in June.
“The strong increase in the LEI-N indicates that economic growth will be robust in Nebraska at the end of 2017,” said economist Eric Thompson, director of the Bureau of Business Research at the university. “The June increase erased doubts about growth after the LEI-N declined during both April and May.”
All six components of the indicator rose during June. Business expectations were strong, with respondents to the June Survey of Nebraska Businesses reporting plans to expand employment and sales over the next six months. Building permits for single-family homes also rose sharply during June, while airline passenger counts and manufacturing hours expanded. Initial claims for unemployment insurance fell, which is a sign of an improving labor market. The value of the U.S. dollar also fell, which is positive for Nebraska businesses which export.
“The broad-based growth in all six components of the leading indicator is a very positive sign for future economic growth,” said Thompson.