Nebraska’s Leading Economic Indicator increased in March, 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 1.24%.
“The increase in the leading indicator suggests the economy will grow over the second and third quarters 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.
Two indicator components improved significantly during March. There was a drop in initial claims for unemployment insurance.
“The decrease in initial claims in Nebraska contrasts with rising claims nationwide and suggests that Nebraska businesses are more likely to retain their current workforce over the next six months,” said Thompson.
Business expectations were positive, and manufacturing hours-worked also rose in Nebraska during March.
“Respondents to the March survey reported plans to increase both sales and employment over the next six months.” said Thompson. “A thriving agricultural economy and food processing sector supports growth in the Nebraska manufacturing industry.”
The full report and a technical report describing the indicators are available at the Bureau of Business Research website, https://bbr.unl.edu.
Published: April 26, 2023