UNL Survey: Nebraska Could See Slow Economic Growth for Rest of Year

A University of Nebraska-Lincoln professor predicts that Nebraska could see slow economic growth through the end of the year.

Eric Thompson, an economics professor who leads UNL's Bureau of Business Research, made this prediction based on six economic indicators.

The indicators, which Thompson says predict economic activity six months into the future, fell 0.08% in July.

They are 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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"The July decrease suggests slow economic growth in Nebraska for the rest of the year and the beginning of 2023," Thompson said.

Thompson believes the leading indicator fell because of an increase in the value of the dollar and a decrease in airline passengers.

"An increase in the value of the dollar creates challenges for businesses such as agriculture and manufacturing, which compete in international markets," Thompson said.

Thompson said airline passengers decreased due to a "sharp" increase in ticket prices.

Despite the slight drop in the leading indicator, state businesses are confident about the near future.

"The small businesses that respond to the Survey of Nebraska Business continue to see opportunities to expand, despite rising interest rates and other challenges facing the Nebraska economy," Thompson wrote.