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NewsTalk

Welcome to the archives for NewsTalk, an IBJ blog published from November 2007 through December 2010.

Indiana recession losing oomph

July 7, 2009
The recession is winding down in Indiana, but the state will lag a few months behind the nation when the economy starts to pick up steam.

Thatâ??s how an Economy.com specialist who tracks Indiana sees it.

Sean Maher, who also focuses on the automotive industry, expects Indiana to gradually make a transition to growth in the first quarter of next year, one to two quarters later than the national recovery.

â??Itâ??s still looking pretty bad, unfortunately,â?? Maher says. â??But there are some very significant parts that are beginning to improve.â??

Hoosier jobs in leisure businesses, retailing and construction are coming back. Home-building permits are perking up in several Indiana cities, largely because the state wasnâ??t clobbered as badly by the housing downturn as some areas of the country.

Countering the bright spots is manufacturing. Indianaâ??s close ties to Detroit automakers hammered the state, and will be the main drag on a quicker recovery, Maher says. General Motors and Chrysler are emerging from their respective bankruptcies and ultimately will prompt suppliers to gear up and bring back workers. But not before suppliers shrink some more.

The recovery will be slow through next year and start picking up momentum in 2011, Maher says.

So the end is in sight â?? if Maher is correct. Howâ??s that for good news? Do you agree with him?
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