Business confidence dropped sharply in Nebraska during June, according to the latest monthly survey from the Bureau of Business Research at the University of Nebraska–Lincoln.
Nebraska business confidence stood at 100.3 in June, based on responses to the Survey of Nebraska Business. This is near the neutral value of 100 and down sharply from 113.2 in May.
“The June drop in business confidence is a concern if it is sustained in future months,” said Eric Thompson, an economist and bureau director. “Absent strong business confidence, Nebraska’s economy is vulnerable to weakness in its key agricultural sector.”
There was also a modest drop in consumer confidence. Responses to the June Survey of Nebraska Households indicate that consumer confidence fell to 104.4 during the month, above the neutral level of 100 but below the May value of 105.3.
Eighteen percent of responding households indicated that the general cost of living was their top financial issue, while 16% chose taxes. Thirty percent of businesses chose customer demand as their top business issue. However, as in most recent months, competition in the product and labor markets also were top concerns. Twenty-one percent of businesses chose labor availability as their top concern and 16% chose competition with other businesses. Nine percent of responding businesses reported flooding or weather as their top issue, showing how spring flooding continues to impact the state economy.
The surveys are sent each month to 500 randomly selected Nebraska businesses and households. During June, 86 businesses responded to the Survey of Nebraska Business, for a response rate of 17%. There were 126 responses to the Survey of Nebraska Households, for a response rate of 25%.