Nebraska will experience modest economic growth in the first half of 2017, according to the latest leading economic indicator report from the University of Nebraska-Lincoln.
The indicator, a composite of economic factors that predict economic growth six months into the future, fell by 0.14 percent in October.
“The October decrease, while small, reduces optimism for 2017,” said economist Eric Thompson, director of the Bureau of Business Research at the university. “The Nebraska economy, however, should continue to grow next year.”
Airline passenger counts declined and the value of the U.S. dollar rose, both potentially negative signs for the Nebraska economy.
“Ongoing increases in the value of the U.S. dollar create competitive pressures for export-oriented businesses, including in manufacturing and agriculture,” Thompson said.
Three components of the indicator rose during October. There were small improvements in manufacturing hours, business expectations and building permits for single-family homes. Initial claims for unemployment insurance were flat during October.
The leading economic indicator report is produced monthly by faculty and students in the Bureau of Business Research in Nebraska’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.