The Leading Index of Indiana, an economic analysis of the state's economy, said the economy improved from July to August.
Fewer people are making what's considered "middle income" wages in Indiana, as the face of the manufacturing industry changes.
While Indiana's population is growing more slowly than the national rate, it is growing faster than most of its neighboring states.
An outlook from the Indiana Business Research Center predicts Indiana's economy will grow slightly faster than the national average.
The top export goods include industrial machinery, industrial equipment and pharmaceutical and life science products.
The Leading Index for Indiana was developed by the Indiana Business Research Center to serve as a predictor of the state's economy.
Economists say it may have become clear only recently to business owners just how much not having a national budget deal could hurt them.
Indiana is seeing significant growth in its 18 and younger Hispanic population, U.S. Census data shows.
More than half of Indiana counties lost residents in 2011.
Census data released Thursday emphasizes how much the housing bubble burst affected Hoosier home ownership.