Nebraska‘s leading economic indicator rose in April, according to the latest report from the University of Nebraska-Lincoln. The indicator, designed to predict economic activity six months from now, rose 1.85%.
“April’s increase is the third consecutive improvement, suggesting Nebraska’s economy will continue to expand through the fourth quarter of 2022,” said economist Eric Thompson, director of the Bureau of Business Research and K.H. Professor Nelson of Economics. “The resilience of Nebraska’s economy is remarkable given concerns about inflation and rising interest rates.”
The six components of Nebraska’s leading economic indicator are business expectations, single-family housing permits, air passenger counts, initial jobless claims, home value WE dollar and manufacturing hours worked.
The leading indicator improved for three main reasons, including a sharp increase in airline passenger numbers in April.
“Airline activity is recovering toward pre-pandemic levels,” Thompson said.
There was also a decline in initial unemployment insurance claims.
“Very low unemployment rates mean opportunity for workers in Nebraska, but a challenge for the business community,” Thompson said.
Many respondents to the April Nebraska Business Survey indicated that finding workers is the biggest challenge facing their business. Still, survey respondents were confident about the future, citing plans to grow both sales and employment over the next six months.
Read the full report and a technical report describing the indicators.