Rise in Nebraska leading indicator fueled by business expectations
Nebraska’s leading economic indicator rose during January, according to the most recent report from the University of Nebraska–Lincoln.
The leading indicator, a composite of economic factors that predict economic growth six months into the future, rose by 1 percent.
“The increase suggests that economic growth will continue in Nebraska through the third quarter of 2019,” said economist Eric Thompson, director of the Bureau of Business Research at the university.
Strong business expectations are the primary reason for the jump in the Nebraska indicator in January. Respondents to the monthly Survey of Nebraska Business reported plans to increase both sales and employment over the next six months.
A drop in the U.S. dollar also contributed to the increase in the leading indicator.
“After rising for 11 consecutive months, the value of the U.S. dollar fell during January, providing some relief for Nebraska businesses that export,” Thompson said.
The leading economic indicator report is produced monthly by faculty and students in the Bureau of Business Research in Nebraska’s College of Business.