Nebraska’s Leading Economic Indicator grew in July, 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 0.89%.
"The solid increase in the leading indicator suggests economic growth will continue in Nebraska through the end of 2023 and into the first month of 2024," said 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 in July, including business expectations.
"Respondents to the July business survey reported plans to increase sales and employment over the next six months," said Thompson.
Manufacturing hours and building permits for single-family homes also rose during July.
"Nebraska home builders and food manufacturers benefit from high prices for their products," according to Thompson.
There were signs of strength in Nebraska’s labor market as initial claims for unemployment insurance fell in the state.
The value of the U.S. dollar also fell in July. "A lower value for the U.S. dollar benefits businesses which compete in international markets, including manufacturing and agricultural businesses," said 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: August 23, 2023