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Leading Index For Indiana Plateaus On Fiscal Cliff Worries

The Leading Index For Indiana, an economic indicator which attempts to predict where the state’s economy is headed, ended a string of increases when it leveled off in this month’s reading - likely due to worries about the nation's budget crisis.

The Indiana Business Research Center’s Tim Slaper conducts research for the Leading Index for Indiana, or LII, each month, and says the slowdown may be due to business leaders only recently understanding just how dire are the financial implications of reaching the end of the year without a federal budget deal…

“The LII, as well as a lot of business sentiment, may have been late to the party,” Slaper says.

But Slaper adds it’s still hard to measure definitively how businesspeople will react to the potential for major economic shifts.  Indiana Chamber of Commerce Vice President for Economic Development Cameron Carter says he believes business owners have understood for some time the cliff was approaching…

“Awareness has turned to concern has turned to worry as we near that deadline,” Carter says.

Prior to December’s plateau, the LII had improved every month since July.

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