Economists say the drop in the economic index could be because sales have dropped during the harsh winter weather.
A winter weather advisory remains in effect until 7 p.m.
Indianapolis has received more than 51 inches of snow since December.
The Department of Education announced this week school districts can either add days to the end of the year or hours onto days to make up for canceled days.
Snow is expected to fall throughout the day on Friday bringing snowfall totals of three to four inches by late afternoon.
Governor Mike Pence announced today that transportation crews are working in two 12-hour shifts each day to repair the roads after the snow storm.
Maintenance crews are looking for more effective and cheaper options to keep the streets safe and clean.
Current indications are that 5 to 10 inches of snow will occur as a low pressure system moves from the Gulf of Mexico through the Tennessee and Ohio Valleys.
Roads will become slick and snow covered later tonight.
INDOT has already used most of its budget for winter road maintenance with two months of the season still left.