Nebraska’s leading economic indicator rose during May, according to the most recent report from the University of Nebraska–Lincoln.

The leading indicator rose 2.45% in May after sharp declines in March and April.

Most components of the indicator improved during the month, as the state economy began to recover from the COVID-19 pandemic. There was a sharp drop in initial claims for unemployment insurance relative to March and April. Building permits for single-family homes also rebounded after dropping in April. There was even an increase in airline passenger enplanements relative to the previous month, as air travel began its slow recovery.

“The increase in the leading indicator confirms that the Nebraska economy will grow over the next six months,” said economist Eric Thompson, director of the Bureau of Business Research at the university. “The pace of recovery should be strong but will depend on a variety of related factors, including the strength of the global economy, the rate of virus spread, the degree of change in consumer spending patterns and the ability of businesses to adjust to changing conditions.”

Read the full report and a technical report describing the indicators.

Video: Eric Thompson discusses the May leading economic indicator report