Strong Economic Growth Expected During the Summer of 2024
Lincoln, Neb. — Nebraska’s Leading Economic Indicator rose sharply during February, according to the most recent report from the University of Nebraska–Lincoln.
The economic indicator, designed to predict economic activity six months into the future, increased by a very rapid 3.48%.
“The increase in the leading indicator suggests there will be strong growth in the Nebraska economy during the summer of 2024,” said economist Eric Thompson, director of the Bureau of Business Research, department chair and K.H. Nelson College Professor of Economics.
The six components of Nebraska’s Leading Economic Indicator include business expectations, building permits for single-family homes, airline passenger counts, initial claims for unemployment insurance, the value of the U.S. dollar and manufacturing hours worked.
Five of six indicator components improved during February, including three that improved significantly.
Manufacturing hours worked rose rapidly in Nebraska during February, and business expectations were also positive.
“Nebraska manufacturing continues to benefit from strong demand for food products as well as recent general improvements in the national manufacturing industry. In addition, Nebraska businesses reported plans to increase both sales and employment over the next six months,” said Thompson.
There also were signs of strength in the Nebraska home building industry during February, despite high interest rates.
“There was a sharp increase in building permits for single-family homes in Nebraska, even after adjusting for seasonal factors,“ said Thompson. “As is happening nationwide, a limited supply of existing homes on the market is supporting demand for new housing in Nebraska.”
The full report and a technical report describing the indicators are available at the Bureau of Business Research website, https://bbr.unl.edu.
