Nebraska Monthly Economic Indicators: July 29, 2016

The Leading Economic Indicator – Nebraska (LEI-N) rose by 1.70% in June 2016. The rapid increase in the LEI-N, which predicts economic growth in the state six months in the future, is the third rapid increase in the last four months. Taken together, these rapid increases indicate that economic growth will be strong in Nebraska for the rest of 2016. Four of the six components of the LEI-N rose during June. There was growth in manufacturing hours and airline passenger counts during the month. There also was strong business expectations, with respondents to the June Survey of Nebraska Business reporting that they expect to expand both sales and employment over the next 6 months. Further, initial claims for unemployment insurance dropped during June. Among declining components, there was a modest decline in single-family home building permits in June and the value of the U.S. dollar rose slightly. A higher dollar is negative for Nebraska export businesses in agriculture and manufacturing