Nebraska’s Leading Economic Indicator increased in April, according to the most recent report from the University of Nebraska–Lincoln. Designed to predict economic activity six months into the future, the Leading Economic Indicator rose by 0.75%.
“The increase in the leading indicator suggests the economy will grow into the fourth quarter of 2023,” said economist Eric Thompson, department chair, K.H. Nelson College Professor of Economics and director of Bureau of Business Research.
The six components of Nebraska’s Leading Economic Indicator include business expectations, building permits for single-family homes, airline passenger counts, initial claims for unemployment insurance, the value of the U.S. dollar and manufacturing hours worked.
Four indicator components improved during April. There was another drop in initial claims for unemployment insurance.
“The continued decline in initial claims shows that Nebraska businesses aim to retain their current workforce despite uncertainty in the national economy," said Thompson.
Business expectations were positive, and airline passenger count rose in Nebraska during April.
“Respondents to the April survey reported plans to increase both sales and employment over the next six months," said Thompson. “Rising airline passenger counts show that both businesses and households have confidence in the future strength of the economy.”
Thompson added that there also was a drop in the value of the U.S. dollar in April, which benefits manufacturing, agricultural and any Nebraska business competing in international markets.
The full report and a technical report describing the indicators are available at the Bureau of Business Research website, https://bbr.unl.edu.
Published: June 1, 2023