Economic growth is expected to remain solid in Nebraska through the second quarter of 2018, according to the most recent leading economic indicator report from the University of Nebraska-Lincoln.
The indicator, a composite of factors that predict economic growth six months into the future, rose by 0.64 percent in November.
“The rise in the LEI-N suggests that solid economic growth will continue in Nebraska over the next six months, through the second quarter of 2018,” economist Eric Thompson, director of the Bureau of Business Research at the university, said in a news release.
Thompson said business expectations were the main reason for the rise in the leading indicator during November. A majority of businesses expect to increase sales and employment over the next six months.
Building permits for single-family homes also rose during November.
The principal concern for the economy is a rising U.S. dollar. “The value of the dollar has increased for the last two months, and that is challenging for Nebraska exporters in agriculture and manufacturing,” Thompson said in the release.
A small drop in airplane boardings and a rise in initial unemployment claims were other negative aspects of the November indicator.
Thompson also said that the October indicator, which originally showed a slight decline, was revised to show a gain of 0.14 percent. That means the indicator has now risen for six months in a row.
The leading economic indicator report is produced monthly by faculty and students in the Bureau of Business Research in Nebraska’s College of Business.
The full report and a technical report describing the indicators are available at the Bureau of Business Research website, www.bbr.unl.edu.