A University of Nebraska-Lincoln indicator of the state's economic strength rose sharply last month, hitting what was likely a record increase.
The leading economic indicator rose by 3.48% in February, according to UNL's Bureau of Business Research.
Eric Thompson, the bureau's director, said that was likely a record increase for a single month.
"There was one other value above 3 (3.29) in August 2021. However, it is more common to have values above 2," Thompson said.
What that means is that the state could be in for strong growth later in the summer, he said, because the indicator's purpose is to predict economic conditions six months in the future.
The indicator measures six data points: 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.
People are also reading…
Five of the components improved during February, Thompson said, including three that improved significantly.
Manufacturing hours worked rose rapidly, and business expectations were positive.
“Nebraska manufacturing continues to benefit from strong demand for food products, as well as recent general improvements in the national manufacturing industry,” he said. “In addition, Nebraska businesses reported plans to increase both sales and employment over the next six months.”
There also were signs of strength in the Nebraska home-building industry during February, despite high interest rates.
“There was a sharp increase in building permits for single-family homes in Nebraska, even after adjusting for seasonal factors,” Thompson said. “As is happening nationwide, a limited supply of existing homes on the market is supporting demand for new housing in Nebraska.”
The indicator has now risen nine out of the past 12 months.