A June increase in Nebraska’s leading economic indicator suggests that economic growth will be strong in Nebraska through the end of 2015.
The indicator has risen five of the last six months.
The June increase resulted from strong business expectations for sales and improvement in the labor market, said economist Eric Thompson, director of the Bureau of Business Research at the University of Nebraska-Lincoln.
“Respondents to the June Survey of Nebraska Business
were optimistic about sales growth at their businesses over the next six months.” Businesses also were positive about job growth. Further, there was a decline in initial claims for unemployment insurance during June, another indicator of future strength in the Nebraska labor market.
Among other components of the leading indicator, there was a decline in manufacturing hours during June. There also was an increase in the value of the U.S. dollar during the month, which creates headwinds for Nebraska’s export-oriented businesses in agriculture and manufacturing.
There was little change in airline passenger counts and building permits for single-family homes during June.
The leading economic indicator report is produced monthly by faculty and students in the Economics Department and the Bureau of Business Research in UNL’s College of Business Administration.