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

The leading indicator fell 7.96% during the month as the COVID-19 pandemic impacted Nebraska’s economy.

“The March decline primarily reflected a spike in initial claims for unemployment insurance and the sharp drop in airline passenger enplanements during the month,” said economist Eric Thompson, director of the Bureau of Business Research at the university. “However, other components of the leading indicator also declined as the economic shock spread throughout the economy, including building permits for single-family homes and manufacturing hours worked.

“The Nebraska economy should begin to recover sometime in May. However, the sharp drop in the leading economic indicator suggests that the state economy will be smaller in the fall of 2020 than it was in January and February of this year.”

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

Video: Eric Thompson discusses the March leading economic indicator report