November survey: Nebraska business optimism persists

            Nebraska businesses maintained an optimistic outlook in November according to the latest survey by the Bureau of Business Research at the University of Nebraska-Lincoln College of Business Administration.

            Respondents to the November Survey of Nebraska Business were solidly optimistic in their expectations for both sales and employment growth, said UNL economist Eric Thompson, director of the bureau.

            Thompson said the results are a positive signal for growth in the Nebraska economy during the first half of next year.

            "Nebraska businesses remained optimistic in November," he said. "In many cases, business' expectations appeared to reflect the strengthening national economy rather than challenges in the agriculture sector."

            In November, 29 percent of businesses responding statewide said they expected sales to grow during the next six months, outweighing the 19 percent who predicted declining sales. These results were nearly identical to those from the October survey. Most businesses predicted employment would remain steady, though 14 percent anticipate adding jobs and 4 percent expect to reduce employment.

            Customer demand was the most common business concern, cited by 33 percent of respondents. One in six responding businesses indicated that the availability and quality of labor was their top concern, an issue that has grown throughout the year as the labor market continued to strengthen. These results were again consistent with responses to the October survey.

            The surveys are sent each month to 500 randomly selected Nebraska businesses. In October, 183 businesses responded, for a response rate of 37 percent. Thompson combined October and November responses to create a sample size large enough to analyze economic trends by region.

            Business expectations were strongest in metropolitan regions. Expectations were especially positive in southeast Nebraska, including the Lincoln and Omaha areas. Business expectations were near the state averages in central Nebraska and far below state averages in in northeast Nebraska and west Nebraska. Thompson said expectations in the latter two regions are best described as neutral rather than optimistic.

            "Metropolitan economies may benefit most from the improving national economy," he said. "Rural economies are more directly impacted by falling crop prices."

            The full survey report is available on the Bureau of Business Research website, http://www.bbr.unl.edu.