Nebraska Monthly Economic Indicators: June 21, 2013

The Leading Economic Indicator – Nebraska (LEI-N) rose by 0.09% during May 2013. The small increase in the LEI-N, which predicts economic growth in the state six months in the future, follows a solid increase in April. Taken together, results for the two months suggest moderate economic growth in Nebraska during the fall of 2013. Looking at individual components of the LEI-N, three of the six components of the LEI-N rose during May. Single-family building permits and airline passengers both rose during the month, indicating strength in the housing sector and the broader economy. Business expectations also rose. In particular, respondents to the Survey of Nebraska Business projected an increase in business sales and employment over the next six month. Among declining components, manufacturing hours dropped during May. Initial claims for unemployment insurance also rose, a negative signal for the job market. Finally, the value of the U.S. dollar rose during May, as it has done most of this year. An increase in the value of the U.S. dollar is challenging for exporters