Indicator shows state's economic growth to slow in mid-2018

Indicator shows state's economic growth to slow in mid-2018

.
Shutterstock.com

Economic growth is expected to slow in Nebraska during the second quarter of 2018, according to the most recent 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 0.24 percent in October.

"The decline in the indicator suggests that Nebraska economic growth will slow in six months, during the second quarter of 2018," said economist Eric Thompson, director of the Bureau of Business Research at the university.

A rising U.S. dollar was the primary reason for the decline in the leading indicator during October.

"A rising dollar increases competitive pressure on Nebraska exporters in agriculture and manufacturing," Thompson said.

Building permits for single-family homes and manufacturing hours worked also fell during October.

On the positive side, initial claims for unemployment insurance fell on a seasonally adjusted basis in October, suggesting continued strength in the Nebraska labor market.

The leading economic indicator report is produced monthly by faculty and students in the Bureau of Business Research in Nebraska's College of Business.

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

Nebraska Bureau of Business Research Leading Economic Indicator – October 2017
VIDEO: Eric Thompson discusses October leading economic indicator report