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Nebraska indicator suggests economic growth may slow in early 2022
Nebraska’s leading economic indicator fell in July, according to the most recent report from the University of Nebraska–Lincoln.
The leading indicator dropped 0.17%, the first decline in 10 months.
“The small decline in the indicator suggests that economic growth may slow in Nebraska in the first months of 2022,” said economist Eric Thompson, director of the Bureau of Business Research and K.H. Nelson Professor of Economics at the university.
The six components of the Leading Economic Indicator-Nebraska are business expectations, building permits for single-family homes, airline passenger counts, initial claims for unemployment insurance, value of the U.S. dollar and manufacturing hours worked. Four of six components worsened during July.
Building permits for single-family homes declined during the month, and there was a small decline in manufacturing hours worked.
There also was an increase in initial claims for unemployment insurance in Nebraska during July, and the value of the U.S. dollar rose. A rising dollar creates challenges for Nebraska businesses that compete in international markets, especially within the agriculture and manufacturing industries.
Business expectations were one positive component.
Nebraska businesses responding to the monthly Survey of Nebraska Businesses reported plans to increase sales and employment in the coming months, Thompson said. Airline passenger counts also rose.
Read the full report and a technical report describing the indicators.