Nebraska’s Leading Economic Indicator increased in May, 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 0.56%.
“The increase in the leading indicator suggests the economy will grow through the end 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.
Three indicator components improved significantly in May, including manufacturing hours worked.
“Nebraska manufacturing has benefited from higher food prices, given that food processing and agricultural equipment production are both a focus of the Nebraska manufacturing industry,” said Thompson.
Business expectations were positive and building permits for single-family homes rose in Nebraska during May.
“Respondents to the May survey reported plans to increase both sales and employment over the next six months," said Thompson.
“While interest rates have risen over the past year, rates have stabilized more recently, allowing the home construction industry to expand modestly," according to Thompson.
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 21, 2023