Nebraska’s Leading Economic Indicator fell slightly in October, marking its second consecutive monthly decline.
A sharp increase in the value of the U.S. dollar was the primary cause of the 0.10 percent decline, said economist Eric Thompson, director of the Bureau of Business Research at UNL.
“A rising dollar puts pressure on exporters in agriculture and manufacturing,” he said.
Business expectations were “one key bright spot” in the report, Thompson said. Respondents to the October Survey of Nebraska Business reported expectations for solid growth in both sales and employment during the next six months. Manufacturing hours also rose modestly during October.
“Overall, businesses remain positive about the future, but economic statistics paint a picture of slowing economic growth,” Thompson said. “This suggests the economy will continue to grow, but at a slower pace during the first four months of 2015.”
Produced by faculty and students in the Department of Economics and Bureau of Business Research at UNL’s College of Business Administration, the index is a composite of six statistics that predict economic growth six months into the future.
October also saw a decline in building permits for single-family homes, while airline passenger counts and first-time claims for unemployment insurance remained essentially unchanged from the previous month.
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.
