Nebraska Monthly Economic Indicators: November 16, 2012

The Leading Economic Indicator – Nebraska (LEI-N) dropped slightly, declining by 0.06%, during October 2012. The decline in the LEI-N, which predicts economic growth in the state six months in the future, followed three months of increase. The slight decline in the LEI-N is not sufficient to reverse the trend seen in the previous three months, and the Nebraska economy is expected to expand slowly in November and December followed by moderate growth in the first half of 2013. Looking at individual components of the LEI-N, there was a decline in three of the six components. Single-family building permits declined in October after several months of improvement. Further, there was a decline in manufacturing hours. Finally, respondents to the Survey of Nebraska Business reported a decline in business expectations for sales and employment. Other indicator components improved during October. Seasonally adjusted airline passenger counts were higher. Seasonally adjusted initial unemployment claims and the dollar exchange rate both fell in October, suggesting improvement in the Nebraska’s labor market and improved prospects for exports