Nebraska’s leading economic indicator grew little in June, according to the most recent report from the University of Nebraska–Lincoln. The indicator, designed to predict economic activity six months into the future, rose just 0.06%.
“The increase in the leading indicator suggests that the rate of economic growth will slow in Nebraska at the end of 2023,” said economist Eric Thompson, director of the Bureau of Business Research, department chair and K.H. Nelson College Professor of Economics.
The six components of Nebraska’s leading economic indicator are 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.
Business expectations improved in June. Respondents to the June business survey reported plans to increase employment over the next six months, Thompson said.
Manufacturing hours and airline passenger counts also rose.
“Higher food prices encourage growth in key segments of the Nebraska manufacturing industry, while airline activity has benefited from pent-up consumer demand for travel,” Thompson said.
Despite these pockets of improvement, there has been some softening of the Nebraska labor market. Initial claims for unemployment insurance rose in June, the second consecutive monthly increase.