While growth at the national level picked up, real gross domestic product (GDP) in the second and third quarters declined in Nebraska. (chart from Federal Reserve Bank of Kansas City)
The growth of Nebraska’s economy slowed towards the end of last year.
The Federal Reserve Bank of Kansas City’s analysis shows the state economy is strong, but two things are slowing it down.
“We are very low in terms of an unemployment rate, so labor markets have gotten quite tight,” Nathan Kauffman, Omaha Branch executive, tells Nebraska Radio Network.
The other issue is the overall ag economy and low commodity prices.
“So industries that might be connected to that, whether that’s in machinery equipment or manufacturing parts or services, certainly, I think, have felt the impact,” Kauffman says.
The Omaha and Lincoln metro area economies are doing well, because Kauffman says those areas have more economic diversity than the smaller, rural communities.
“There’s just not the same kind of business dynamism and new opportunities,” he explains, “and recognizing the challenges of agriculture makes those circumstances different.”
Kauffman says Nebraska households appear to be in a relatively strong financial position with solid job opportunities and higher wages.
AUDIO: Mike Loizzo reports [:41]