Nebraska’s economy could begin to cool in early 2017, according to the latest leading economic indicator report from the University of Nebraska-Lincoln.

The indicator, a composite of economic factors that predict growth six months into the future, rose by a modest 0.23 percent in July, after strong increases in March, April and June.

“This month’s leading indicator provides the first glimpse of Nebraska economic growth in early 2017,” said economist Eric Thompson, director of the Bureau of Business Research at the University of Nebraska-Lincoln. “The indicator suggests that economic growth will moderate in Nebraska in January 2017, after strong growth at the end of 2016.”

July data point to a strong and improving Nebraska labor market. Initial claims for unemployment insurance declined, while businesses reported plans to expand hiring over the next six months.

However, July’s report included some challenging findings, including modest drops in manufacturing hours and building permits for single-family homes. The value of the U.S. dollar rose for the third month in a row, continuing to cause competitive pressure for Nebraska’s export-oriented businesses.

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.

The full report and a technical report describing the indicators are available at the Bureau of Business Research website here.