Nebraska’s leading economic indicator increased in May, as reported by the University of Nebraska-Lincoln. The indicator, designed to forecast economic activity six months ahead, rose by 0.26%. Economist Eric Thompson, the Director of the Bureau of Business Research and a professor of economics, noted that the monthly report suggests growth in the Nebraska economy for the second half of the year.
The indicator consists of six components: 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 improvements in May.
Thompson pointed out that Nebraska’s manufacturing hours worked increased in May, indicating a benefit from strong demand for food products. Business expectations were also positive, with respondents in the May survey expressing plans to increase sales and employment over the next six months. Additionally, there was a slight increase in airline passenger counts during the month.
For more detailed information, the full report and a technical report on the indicators can be accessed.