Nebraska should experience strong economic growth through the rest of 2016, according to the latest leading economic indicator report from the University of Nebraska-Lincoln.
The indicator, a composite of economic factors that predict growth six months into the future, rose by 1.7 percent in June.
“Nebraska’s leading indicator rose rapidly due to strong business expectations, increases in manufacturing hours and airline passenger counts as well as a drop in initial claims for unemployment insurance,” said economist Eric Thompson, director of the Bureau of Business Research at the University of Nebraska-Lincoln. “The rapid increase in June indicates that Nebraska will be able to maintain strong economic growth through the rest of 2016.”
June’s rapid increase followed two sharp increases in March and April, Thompson noted.
There were two negative components of the leading indicator during June. There was a modest decline in building permits for single-family homes. There also was a modest increase in the value of the U.S. dollar during June. An increase in the value of the dollar increases competitive pressures on U.S. export businesses, including agriculture and manufacturing businesses in Nebraska.
The leading economic indicator report is produced monthly by faculty and students in the economics department and the Bureau of Business Research in UNL’s College of Business Administration.
The full report and a technical report describing the indicators are available here.