An economic indicator suggests moderate growth in the state economy next year.
The Leading Economic Indicator for Nebraska dropped slightly in October, down .08%.
The Bureau of Business Research at the University of Nebraska-Lincoln’s College of Business Administration produces the monthly indicator.
Bureau Director Eric Thompson says the federal government shutdown might have had an impact on the Survey of Nebraska Businesses.
“A lot of folks were filling out our survey in early and mid-October. So, that was during the government shutdown that they were making those responses,” Thompson tells Nebraska Radio Network affiliate KLIN. “That obviously created a little uncertainty about sales going forward as well until that was resolved.”
A sharp drop in crop prices might have prompted a decline in businesses expectations, according to the survey results.
Thompson says it definitely dampened enthusiasm in rural Nebraska.
“I think the drop this month probably reflects the drop in crop prices that we’ve seen over the last two months and some of our respondents from rural areas obviously that created a little pessimism in terms of sales volumes,” according to Thompson.
The slight drop in October followed two months of solid growth in August and September.
The Leading Economic Indicator for Nebraska is a composite of six components which predict future economic growth: single-family building permits, airline passenger counts, initial unemployment claims, manufacturing hours, the value of the U.S. dollar, and business expectations gathered from the Survey of Nebraska Business.
Details of the report are available at the UNL College of Business Administration website: ba.unl.edu.