Nebraska Monthly Economic Indicators: February 20, 2015

The Leading Economic Indicator – Nebraska (LEI-N) rose by 0.40% during January 2015. The increase in the LEI-N, which predicts economic growth in the state six months in the future, suggests that economic growth will accelerate in mid-2015. Three of six components of the leading economic indicator rose during January. Respondents to the Survey of Nebraska Business were optimistic. Respondents predicted a strong increase in sales and employment over the next six months. There also was a decline in initial claims for unemployment insurance, which suggests strength in the labor market. Building permits also edged up on a seasonally adjusted basis. Among declining components, there was a slight decline in airline passenger counts and manufacturing hours during January. The exchange rate was the largest negative factor. For the sixth consecutive month, there was a significant increase in the value of the U.S. Dollar. The rising value of the dollar continues to put pressure on Nebraska export businesses