Nebraska’s economy should accelerate in mid-2015, according to the latest Leading Economic Indicator report from UNL.
Nebraska’s Leading Economic Indicator, designed to predict economic growth six months into the future, rose by .87 percent in December. Five of six economic factors used to calculate the indicator improved during the month, including a survey of Nebraska businesses that predicted strong growth in jobs and sales through spring and summer.
“The improvement in the leading indicator suggests that economic growth will accelerate in Nebraska during mid-2015,” said economist Eric Thompson, director of the Bureau of Business Research.
Faculty and students in the Economics Department and the Bureau of Business Research in the College of Business Administration produce the indicator.
During December, five of six components improved.
“Business expectations were particularly robust during the month,” Thompson said.
In addition, initial claims for unemployment insurance dropped sharply, reflecting labor market strength.
Other components of the Indicator rose modestly including single-family building permits, airline passenger counts and manufacturing hours.
“The only negative component was the exchange rate,” Thompson said. “A rising U.S. dollar creates a challenging environment for Nebraska’s export businesses. December was the fifth consecutive month that the value of the dollar rose sharply.”
The full Nebraska Monthly Economic Indicators report and a Technical Report describing the indicators are available at the UNL Bureau of Business Research website, http://www.bbr.unl.edu.
