Slight increase in Leading Economic Indicator-Nebraska
Released on 06/21/2013, at 2:00 AM
Office of University Communications
University of Nebraska–Lincoln
The Leading Economic Indicator-Nebraska rose by 0.09 percent in May. This slight increase in the indicator, which is designed to predict economic growth six months in the future, followed a solid increase of 1 percent in April.
The Leading Economic Indicator-Nebraska is a composite of six components which predict future economic growth: single-family building permits, airline passenger counts, initial unemployment claims, manufacturing hours, value of the U.S. dollar, and business expectations gathered from the Survey of Nebraska Business.
"The slight increase in the Leading Economic Indicator-Nebraska during May failed to build on the solid increase observed in April," said University of Nebraska-Lincoln economist Eric Thompson, director of the Bureau of Business Research. "This suggests moderate rather than strong growth in the Nebraska economy during the fall of 2013."
There was a mixed performance among individual components of the Leading Economic Indicator-Nebraska during May, Thompson said. Three components rose during May, including improvements in housing starts, airline passenger counts and business expectations. However, three components also declined. There was a decline in manufacturing hours and an increase in initial unemployment claims. An increase in the value of the U.S. dollar also suggests future competitive pressure on businesses that export, Thompson said.
The full Nebraska Monthly Economic Indicators report and a Technical Report describing the indicators are available at the UNL College of Business Administration website, http://www.cba.unl.edu.
The Leading Economic Indicator-Nebraska is produced by faculty and students in the Department of Economics and Bureau of Business Research within the UNL College of Business Administration.
News Release Contacts:
- Eric Thompson, Associate Professor, Economics UNL