Date of this Version
Business in Nebraska vol. 57, no. 668
Evidence mounts that the nation has already begun its recovery from one of the mildest recessions on record. The first quarter GDP estimates report a spectacular gain. Not all signals are that clear. The recession itself has been labeled a manufacturing recession. Manufactu ring output fell longer and farther than it had in the 1990-1991 recession. The impact of the recent manufacturing recession was spotty. Even within manufacturing, some sectors were hit hard, generally those in the durables area. Others, generally in the nondurables portion, remained unaffected. The services sector held up well with only a small decrease in total activity; however, the impact of the downturn was spotty within the sector, as well. Services related to travel were hard hit, while health care services were virtually unscathed. Difficulties in internet-based businesses negatively impacted the business services area.
Nebraska weathered the national recession well. As a whole, the state did not experience a downturn, but did see a decrease in overall economic growth rates. Total nonfarm employment in 2001 remained at the 2000 level. Nonfarm personal income grew 3.4 percent and net taxable retail sales increased 2.9 percent-small increases overthe inflation rate as measured by the U.S. Consumer Price Index (CPI). Net farm income increased 21 percent over a dreary performance in 2000, adding to Nebraska's economic stability.
Construction and Mining
Transportation, Communication, and Utilities (TCU)
Net Taxable Retail Sales