Nebraska Monthly Economic Indicators: February 19, 2016

The Leading Economic Indicator – Nebraska (LEI-N) rose by 0.11% in January 2016. The increase in the LEI-N, which predicts economic growth in the state six months in the future, suggests that economic growth will be modest in Nebraska during the summer of 2016. Four of the six components of the LEI-N improved during January. Business expectations, in particular, were strong during the month. Respondents to the January Survey of Nebraska Business predicted strong growth in both sales and employment over the next 6 months. Initial claims for unemployment insurance also fell during January, on a seasonally adjusted basis. Further, there were modest increases in manufacturing hours and airline passenger counts. In terms of declining components, there was a drop in building permits for single-family homes. There also was a sharp increase in the value of the U.S. dollar in January. A higher U.S. dollar reduces the competitiveness of Nebraska exporters in manufacturing and agriculture