Nebraska‘s leading economic indicator rose in February, according to the latest report from the University of Nebraska-Lincoln. The indicator, designed to predict economic activity six months from now, rose 2.41%
“The indicator’s February value suggests Nebraska’s economy had strong momentum at the start of the year,” said economist Eric Thompson, director of the Bureau of Business Research and K.H. Professor Nelson of Economics. “The rate of growth, however, will moderate in the coming months as energy prices and interest rates rise.”
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 on rising positive business expectations. Respondents to the February survey of Nebraska businesses reported plans to increase sales and employment over the next six months. In addition, a sharp decline in initial unemployment insurance claims was noted.
Additionally, air passenger numbers, manufacturing hours worked and single-family housing permits all improved in February.
“A rapid decline covid-19 cases in February led to an upturn in airline activity, as well as a general rebound in economic activity,” Thompson said.
Read the full report and a technical report describing the indicators.