Bureau of Business Research
Date of this Version
9-21-2022
Document Type
Article
Citation
Copyright 2022 Eric Thompson, UNL Bureau of Business Research
Abstract
The LEI-N changed little in August 2022, falling by just 0.01%. The leading indicator is designed to predict economic growth six months in the future. As a result, the flat value for the indicator in August signals that economic growth in Nebraska will be slow at the beginning of 2023. Several components of the leading indicator worsened during August. First, there was a decrease in building permits for single-family homes, likely in response to rising interest rates. Second, initial claims for unemployment insurance rose during August, suggesting some softening of the state’s strong labor market. By contrast, positive business expectations supported the leading indicator. In particular, respondents to the August Survey of Nebraska Business reported plans to increase sales and employment over the next six months.
Comments
Prepared by the UNL College of Business, Bureau of Business Research