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There was a sharp increase in Nebraska’s Leading Economic Indicator during February, 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 increased by a very rapid 3.48%.
"The increase in the leading indicator suggests there will be strong growth in the Nebraska economy during the summer of 2024," 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.
Five of six indicator components improved during February, including three that improved significantly.
Manufacturing hours worked rose rapidly in Nebraska during February, and business expectations were also positive.
“Nebraska manufacturing continues to benefit from strong demand for food products as well as recent general improvements in the national manufacturing industry. In addition, Nebraska businesses reported plans to increase both sales and employment over the next six months,” said Thompson.
There also were signs of strength in the Nebraska home building industry during February, despite high interest rates.
“There was a sharp increase in building permits for single-family homes in Nebraska, even after adjusting for seasonal factors,“ said Thompson. “As is happening nationwide, a limited supply of existing homes on the market is supporting demand for new housing in Nebraska.”
The full report and a technical report describing the indicators are available at the Bureau of Business Research website, https://bbr.unl.edu.
Published: March 27, 2024