Nebraska Monthly Economic Indicators: July 24, 2015

The Leading Economic Indicator – Nebraska (LEI-N) rose by 0.40% in June 2015, its fifth increase in the last six months. The rise in the LEI-N, which predicts economic growth in the state six months in the future, indicates strong economic growth in Nebraska through the end of 2015. The leading economic indicator rose because of positive business expectations for sales and employment and an improving labor market. Respondents to the monthly Survey of Nebraska Business were optimistic about sales growth over the next six months. Businesses also had positive expectations for employment growth and there was a decline in initial claims for unemployment insurance. Among other components of the leading indicator, there was little change in building permits for single-family homes and passenger emplanements. There was a decline in manufacturing hours and an increase in the value of the U.S. dollar. A rising dollar creates headwinds for the state economy by weakening the competitive position of Nebraska export businesses in manufacturing and agriculture