An economic indicator watched by University of Nebraska economists suggests the state economy will slowed down in the middle of next year.
Bureau of Business Research Director Eric Thompson says the composite of economic factors forecasts conditions for the next six months.
“October’s decline suggest that Nebraska’s economy may slow or cool off during the second quarter of 2018,” Thompson tells Nebraska Radio Network affiliate KLIN. “However, we do expect moderate growth in the state until then.”
A rise in the U.S. dollar is getting the blame.
“The main factor that caused the indicator to fall was that the value of the U.S. dollar started rising again in October and that puts quite a bit of pressure on exporting businesses whether that’s in agriculture or manufacturing and that does have an influence on the outlook for our state’s economy,” according to Thompson.
The latest report released by the Burau of Business Research on the Lincoln campus forecasts a slowdown in the state economy during the second quarter of 2018. The composite of economic factors fell in October.
Perhaps not surprisingly, manufacturing hours fell in October, likely due to the pressure the stronger dollar is putting on exports. The number of building permits issued for single-family housing fell last month as well.
On the bright side, unemployment insurance claims fell in October, suggesting the state labor market remains strong.
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 the full report.
Jane Monnich, KLIN, contributed to this report.