Nebraska's economy 'not as dire'

Nebraska will face challenges as its economy recovers, but the situation won't be as dire as that facing many other states, according to the Nebraska Business Forecast Council.

Once the recession ends, expect "a period of slow, uneven expansion" nationally, today's report says.

Nebraska will benefit from relatively strong key industries, including agriculture, and stable property values, said Eric Thompson, a University of Nebraska-Lnicoln economist who helped write the report.

The forecasters expect that the U.S. economy will begin to grow before the end of 2009 -- but slowly because the housing and auto sectors have been weaker than expected.

In Nebraska, the report said, employment and farm income will decrease this year and non-farm income will increase weakly. In 2010, the economists expect solid job and income growth, with farm incomes stable and above average.