Nebraska’s leading economic indicator rose in January, according to the most recent report from the University of Nebraska–Lincoln. The indicator, which is designed to predict economic activity six months into the future, increased 0.58%.
“The indicator has improved steadily for four consecutive months, suggesting moderate economic growth in Nebraska through the summer,” said economist Eric Thompson, director of the Bureau of Business Research and K.H. Nelson Professor of Economics.
The six components of Nebraska’s leading economic indicator include business expectations, building permits for single-family homes, airline passenger counts, initial claims for unemployment insurance, the value of the U.S. dollar and manufacturing hours worked.
Respondents to the January Survey of Nebraska Businesses reported plans to increase sales and employment over the next six months.
“With demand growing, businesses remain confident about growth despite supply chain challenges,” Thompson said. “The Nebraska economy also benefits from a strong labor market.”
There was another decline in initial claims for unemployment insurance during January.
Also, Nebraska businesses competing in international markets benefited from a decline in the value of the U.S. dollar.
“A falling U.S. dollar helps Nebraska businesses meet the prices of international competitors,” Thompson said.
The full report and a technical report describing the indicators are available at the Bureau of Business Research website here.