A University of Nebraska-Lincoln economic index declined again in November, suggesting the state could be in for a rough first half of the year.
Nebraska’s Leading Economic Indicator, which is designed to predict economic activity, declined 0.16% in November, according to the most recent report from UNL.
“The leading indicator has dropped in four of the last six months, suggesting that there will be no growth in the Nebraska economy in the first half of 2023,†said economist Eric Thompson, director of the Bureau of Business Research, department chair and K.H. Nelson College Professor of Economics.
The Leading Economic Indicator has six components: 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.
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Two components of the leading indicator worsened significantly during November: Initial claims for unemployment insurance rose and manufacturing hours worked declined.
Thompson suggested that the increase in unemployment claims could indicate a softening labor market, while the decline in manufacturing hours worked could be a sign of overall economic weakness.