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. I never thought I'd see the day when a Republican Mayor would lead the charge in attempting to raise every tax we have to pay. Now it's income taxes and property taxes that Ballard wants to increase. And to pay for a pre-K program? Many studies have shown that pre-K offer no long-term educational benefits whatsoever. And Ballard is pitching it as a way of fighting crime? Who is he kidding? It's about government provided day care. It's a shame that we elected a Republican who has turned out to be a huge big spending, big taxing, big borrowing liberal Democrat.

  2. Why do we blame the unions? They did not create the 11 different school districts that are the root of the problem.

  3. I was just watching an AOW race from cleveland in 1997...in addition to the 65K for the race, there were more people in boats watching that race from the lake than were IndyCar fans watching the 2014 IndyCar season finale in the Fontana grandstands. Just sayin...That's some resurgence modern IndyCar has going. Almost profitable, nobody in the grandstands and TV ratings dropping 61% at some tracks in the series. Business model..."CRAZY" as said by a NASCAR track general manager. Yup, this thing is purring like a cat! Sponsors...send them your cash, pronto!!! LOL, not a chance.

  4. I'm sure Indiana is paradise for the wealthy and affluent, but what about the rest of us? Over the last 40 years, conservatives and the business elite have run this country (and state)into the ground. The pendulum will swing back as more moderate voters get tired of Reaganomics and regressive social policies. Add to that the wave of minority voters coming up in the next 10 to 15 years and things will get better. unfortunately we have to suffer through 10 more years of gerrymandered districts and dispropionate representation.

  5. Funny thing....rich people telling poor people how bad the other rich people are wanting to cut benefits/school etc and that they should vote for those rich people that just did it. Just saying..............

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