Economic Growth Expected to Slow in Nebraska in First Quarter of 2024
Lincoln, Neb. — Nebraska’s Leading Economic Indicator fell in August, according to the most recent report from the University of Nebraska–Lincoln. Designed to predict economic activity six months into the future, the Leading Economic Indicator declined by 0.93%.
“The decrease in the leading indicator suggests economic growth will slow in Nebraska during the first quarter 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.
Four of six indicator components worsened in August.
Manufacturing hours and airline passenger counts dropped during August.
“These declines suggest weakening demand for business travel and manufactured goods,” according to Thompson.
There also were signs of softening in Nebraska’s labor market as initial claims for unemployment insurance rose in the state.
In addition, the value of the U.S. dollar rose in August. “A higher value for the U.S. dollar creates challenges for businesses in agriculture and manufacturing which compete in international markets,” said Thompson.
The full report and a technical report describing the indicators are available at the Bureau of Business Research website, https://bbr.unl.edu.
