Nebraska will experience moderate economic growth in the first quarter of 2017, according to the latest leading economic indicator report from the University of Nebraska-Lincoln.
The indicator, a composite of economic factors that predict economic growth six months into the future, rose by a solid 1.14 percent in September.
“The September increase is a positive sign for economic growth in 2017,” said economist Eric Thompson, director of the Bureau of Business Research at the University of Nebraska-Lincoln. “The solid increase in the indicator suggests that growth will be moderate, rather than slow, during the first quarter of 2017.”
Four of 6 leading indicator components rose during September. “There was a strong increase in airline passenger counts,” Thompson noted. “Businesses also were optimistic, expecting an increase in sales and employment over the next six months.” Manufacturing hours rose during September while there was a decline in initial claims for unemployment insurance.
On the cautionary side, the value of the U.S. dollar rose in September. A higher U.S. dollar is negative for export-oriented businesses in agriculture and manufacturing.
The leading economic indicator report is produced monthly by faculty and students in the Economics Department and the Bureau of Business Research in UNL’s College of Business Administration.