Nebraska’s economic growth will slow during the second 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, fell by 0.50% percent in December.
“The decline during December is the second consecutive monthly setback,” said economist Eric Thompson, director of the Bureau of Business Research at the university. “Taken together with the decline in November, the December drop suggests that economic growth will be weak in Nebraska during the second quarter of 2017.”
Initial claims for unemployment insurance and the value of the U.S. dollar both rose sharply during December, potentially negative signs for the Nebraska economy.
“A rising dollar is a drag on Nebraska’s export-oriented businesses, such as agriculture and manufacturing,” Thompson said. “The sharp increase in initial claims for unemployment insurance suggests a softening of the labor market.”
However, three components of the indicator also rose during December. There was an increase in manufacturing hours, building permits for single-family homes and business expectations. In particular, respondents to the December Survey of Nebraska Business reported plans to increase both sales and employment over the next six months.