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There was a decline in Nebraska’s Leading Economic Indicator during 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 fell by 1.31% after a nearly 4% increase during February.
“Taken together, the two monthly reports suggest that there will be rapid economic growth in Nebraska during mid-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.
Two of the six indicator components fell in March after a strong increase in February.
“Nebraska manufacturing hours-worked moderated in March after a very sharp increase the month prior. The Nebraska manufacturing industry continues to benefit from strong demand for food products and general improvements in the national manufacturing industry,” said Thompson. “Building permits for single-family homes also abated in March after a strong February increase. High interest rates create a challenge for homebuilders, but new home sales continue to be supported by a limited supply of existing homes on the market.”
On the positive side, business expectations remained strong in March. Respondents to the March Survey of Nebraska Business reported plans to increase sales and employment over the next six months.
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 24, 2024