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Indiana Economic Index On The Rise

By Gretchen Frazee

Posted February 21, 2012

The Indiana economy continues to improve. According to Indiana University economists the state's monthly economic index increased in January to a post-recession high.

The housing market showed substantial growth in January. Homebuilders told IU economists they were more confident in the market than they had been since 2007.

IU Director of Economic Analysis Timothy Slaper says Indiana has always had a higher foreclosure rate than the nation, but now, it's leveling off.

"Basically what we see now is that Indiana is just basically staying at the same rate that it always has been and we're seeing some recovery in foreclosures," he says.

Auto sales also picked up in January. The tricky part, Slaper says, is the increase in gas prices.

"That's really key in terms of the type of cars they buy because instead of buying the mid-size car they're going to be moving to the subcompact because it gets better fuel economy. And that's going to have a knock on effect for the type of car people buy and the parts that go into it," he says.

And since manufacturing is a large part of the state's economy, it could have a bigger effect on how much business local auto manufacturers have in the near future

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Indiana Economic Index On The Rise

By Gretchen Frazee

Posted February 21, 2012

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