The latest report from the University of Nebraska-Lincoln’s Bureau of business Research was essentially flat during August, falling a minuscule 0.01 percent from the previous month.
BBR Director and economist Eric Thompson says a steady indicator value implies slow economic growth in Nebraska during the first few months of 2023.
Thompson says the August report saw several of the six components move in a negative direction. “First, there was a decline in building permits for single family homes in the state, likely due to rising interest rates. Second, there was an increase in initial claims for unemployment insurance within Nebraska,” said Thompson. “This also might be expected due to rising interest rates, since higher interest rates would be expected to reduce the demand for labor, especially in interest-sensitive industries such as construction, and durable goods manufacturing.”
Thompson says despite the flat index, responding business representatives still had positive future expectations, with many anticipating increasing sales and employment.