Nebraska’s Leading Economic Indicator: A Positive Outlook for the Second Half of the Year

According to a recent study by the University of Nebraska-Lincoln, Nebraska’s leading economic indicator increased in May. The indicator, designed to predict economic activity six months into the future, rose by 0.26%. Eric Thompson, director of the Bureau of Business Research at UNL, noted that the monthly report suggests growth in the Nebraska economy in the second half of the year.

The six components that make up this indicator include 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 of these components showed improvement in May.

Nebraska’s manufacturing hours worked increased during May due to strong demand for food products. Business expectations were positive as survey respondents reported plans to increase sales and employment in the next six months. There was also a slight increase in airline passenger counts during the month.

For more information on this report and a technical report on the indicators used, visit UNL’s website.