Indicator: State economy to see slow summer growth

Indicator: State economy to see slow summer growth

Eric Thompson (second from right), associate professor of economics, works with student research assistants in the College of Business Administration’s Bureau of Business Research. The bureau is designed to assist with Nebraska’s economic development efforts.
Craig Chandler | University Communication
Eric Thompson (second from right), associate professor of economics, works with student research assistants in the College of Business Administration’s Bureau of Business Research. The bureau is designed to assist with Nebraska’s economic development efforts.

The Nebraska economy should grow modestly during summer 2016, 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, showed a slight increase of 0.11 percent in January.

"The leading indicator continues to signal modest growth in the Nebraska economy," said economist Eric Thompson, director of the Bureau of Business Research at the University of Nebraska-Lincoln.

A strengthening dollar is creating headwinds for Nebraska exporters, he said.

"Economic growth in Nebraska is held back by a rising U.S. dollar, which limits potential growth in manufacturing and agriculture," Thompson said.

Business expectations were a bright spot for the Nebraska economy. Respondents to the January Survey of Nebraska Business predicted strong growth in sales and employment at their businesses over the next six months. In addition, initial claims for unemployment insurance declined, a sign that Nebraska's labor market continues to strengthen. Manufacturing hours and airline travel also increased slightly in January.

Faculty and students in the Economics Department and the Bureau of Business Research in UNL’s College of Business Administration produce the monthly leading economic indicator report.

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