Nebraska’s leading economic indicator increased in May, according to the most recent report from the University of Nebraska–Lincoln. The indicator is designed to predict economic activity six months into the future and rose 0.56%.
“The increase in the leading indicator suggests the economy will grow through the end of 2023,” says economist Eric Thompson, director of the Bureau of Business Research.
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.
Three indicator components improved significantly in May, including manufacturing hours worked. “Nebraska manufacturing has benefited from higher food prices, given that food processing and agricultural equipment production are both a focus of the Nebraska manufacturing industry,” Thompson says.
Business expectations were positive and building permits for single-family homes rose. Respondents to the May survey reported plans to increase both sales and employment over the next six months, Thompson says. “While interest rates have risen over the past year, rates have stabilized more recently, allowing the home construction industry to expand modestly.”
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