Indiana economy is cooling off

July 22, 2010
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An Indiana University index that anticipates economic conditions in the state several months in the future lost steam in June for the second month in a row.

That suggests already-tepid growth will weaken even more. But looking at the bright side, at least the economy isn’t expected to slip into reverse.

The index, compiled by the Indiana Business Research Center in the Kelley School of Business, retreated to 96.3 in June, the lowest since February. The release can be read here.

Homebuilder enthusiasm cooled, stocks of transportation companies slipped and manufacturing activity retreated. But orders for cars and parts edged up. And the spread between yields on 10-year Treasury bonds minus the Federal Funds rate, a measure of investor expectations of a near-term recession, improved slightly, too.

June looked worse than May partly because the Memorial Day weekend falls in May, noted Timothy Slaper, who directs research at the center.

The index suggests recession won’t return. But it’s going to be a long time before very many more jobs are created.

If three of the five index components lose momentum in July, which would mark a third month in a row, Slaper will dig deeper into other statistics to try to anticipate whether another recession is on the way.

Nearly two years have passed since three of the five components declined three consecutive months.
 

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  1. The east side does have potential...and I have always thought Washington Scare should become an outlet mall. Anyone remember how popular Eastgate was? Well, Indy has no outlet malls, we have to go to Edinburgh for the deep discounts and I don't understand why. Jim is right. We need a few good eastsiders interested in actually making some noise and trying to change the commerce, culture and stereotypes of the East side. Irvington is very progressive and making great strides, why can't the far east side ride on their coat tails to make some changes?

  2. Boston.com has an article from 2010 where they talk about how Interactions moved to Massachusetts in the year prior. http://www.boston.com/business/technology/innoeco/2010/07/interactions_banks_63_million.html The article includes a link back to that Inside Indiana Business press release I linked to earlier, snarkily noting, "Guess this 2006 plan to create 200-plus new jobs in Indiana didn't exactly work out."

  3. I live on the east side and I have read all your comments. a local paper just did an article on Washington square mall with just as many comments and concerns. I am not sure if they are still around, but there was an east side coalition with good intentions to do good things on the east side. And there is a facebook post that called my eastside indy with many old members of the eastside who voice concerns about the east side of the city. We need to come together and not just complain and moan, but come up with actual concrete solutions, because what Dal said is very very true- the eastside could be a goldmine in the right hands. But if anyone is going damn, and change things, it is us eastside residents

  4. Please go back re-read your economics text book and the fine print on the February 2014 CBO report. A minimum wage increase has never resulted in a net job loss...

  5. The GOP at the Statehouse is more interested in PR to keep their majority, than using it to get anything good actually done. The State continues its downward spiral.

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