Nebraska’s Leading Economic Indicator grew little in June, 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 just 0.06%.
“The increase in the leading indicator suggests that the rate of economic growth will slow in Nebraska at 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 in June, including business expectations.
“Respondents to the June business survey reported plans to increase employment over the next six months," said Thompson.
Manufacturing hours and airline passenger counts also rose during June.
“Higher food prices encourage growth in key segments of the Nebraska manufacturing industry, while airline activity has benefited from pent-up consumer demand for travel,” according to Thompson.
Despite these pockets of improvement, there has been some softening of the Nebraska labor market. Initial claims for unemployment insurance rose in June, the second consecutive monthly increase.
The full report and a technical report describing the indicators are available at the Bureau of Business Research website, https://bbr.unl.edu.
Published: August 2, 2023