The latest monthly report from the UNL Bureau of Business Research shows Nebraska’s leading economic indicator rose 1% in December
The indicator is designed to predict economic activity 6 months into the future, and Bureau Director and Economist Eric Thompson says the 1% increased suggests the state’s economy will grow at a moderate pace in the first half of this year.
The leading indicator is made up of 6 components – business expectations, building permits for single-family homes, airline passenger counts, initial unemployment claims, the value of the U-S dollar and manufacturing hours worked – and 3 rose last month.
One was airline passenger counts Thompson says an increase in leisure travel implies that households feel confident about their jobs and income, while an increase in business travel suggests that firms are coordinating new activity with customers and suppliers.
Business expectations were also positive with firms in the state reporting plans to increase sales and employment over the next six months while a drop in the value of the dollar is advantageous for Nebraska businesses that compete in international markets.
The full report and a technical report describing the indicators are available at the Bureau of Business Research website bbr.unl.edu