Economic growth in Nebraska might slow down later this year.
The leading economic indicator followed closely by researchers at the Bureau of Business Research at the University of Nebraska-Lincoln dropped for the first time this year in April.
“It followed three months of an increase in the leading indicator, so I don’t think the results are too bad,” Bureau Director Eric Thompson tells Nebraska Radio Network affiliate KLIN. “But it does suggest economic growth will be moderate rather than strong toward the end of the year.”
The indicator is a composite of economic factors used to forecast economic growth over the next six months. It rose in January, February, and March before dropping in April.
Four components led the decline in April. Manufacturing hours declined, along with airline passengers and building permits for single-family homes. Initial claims for unemployment insurance also rose during April, indicating a softening of the labor market.
Business executives remain bullish on Nebraska. Those interviewed by the April survey indicated they believe sales and employment will grow in the second half of the year.
The leading economic indicator report is produced monthly by faculty and students in the Bureau of Business Research in Nebraska’s College of Business.
Click here for more on the report.
By Jane Monnich, KLIN