A leading economic indicator report released by the University of Nebraska – Lincoln says an economic slowdown could be in the state’s very near future.
Director Eric Thompson with the Bureau of Business Research tells Nebraska Radio Network affiliate, KLIN, business is booming now, but the economic report suggests that boom may fizzle.
“I really think what happened is we had a kind of burst of economic energy as the tax cuts were passed.” says Thompson, referring to the Tax Cuts and Jobs Act of 2017. “The question now is will that be sustained?”
The university report notes several economic trends that are indicators of a slowing economy. Among them, a strong U.S dollar, a dip in single-family building permits, and more initial unemployment claims.
Another indicator the report points to is a drop in business and consumer confidence levels.
Thompson says, six to nine months ago, those levels were approaching all-time highs. Now however, Thompson says they’re normalizing.
“They’ve gone from very strong levels to more positive, but not very strong,” according to Thompson.
Thompson emphasizes that if the forecast does come true, Nebraska’s economy is still on pace to grow; just at a lot slower pace.