Nebraska’s leading economic indicator increased in May, 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 0.26%.

“The monthly report suggests that the Nebraska economy will grow in the second half of the year,” 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 the 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. Four components improved during May.

Video: Eric Thompson discusses the May leading economic indicator report

“Nebraska manufacturing hours worked grew again in May, as Nebraska continues to benefit from strong demand for food products,” Thompson said.

Business expectations also were positive. Respondents to the May survey reported plans to increase sales and employment over the next six months.

There was also a small increase in airline passenger counts during the month.

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