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What Do The U.S. GDP Numbers Mean For Indiana?

By Samantha Horton

Posted July 30, 2020

person wearing mask

(Lauren Chapman)

The U.S. economy showed its largest decline in more than 70 years last quarter. The broad measure of economic activity also points to areas where Indiana is struggling.

The gross domestic product or GDP calculates the value of goods and services. And it showed consumers holding back from spending in light of shutdowns due to the COVID-19 pandemic.

The April, May and June numbers show an almost 10 percent quarterly drop.

Indiana University Kelley School of Business economics professor Kyle Anderson said the national report does bring some concern for Indiana. 

"One is a significant drop in exports,” Anderson said. “Indiana relying on a lot of manufacturing and a lot of exports relative to other states. So that’s gonna hit Indiana a little bit harder. And also services, and specifically health care, were hit relatively hard. And I think that might be surprising to some folks, but again, especially in central Indiana, a lot of our economy is driven on health care.”

Anderson said he plans to continue following jobless claims, and whether businesses are able to keep employees, to get a better picture of what is happening in Indiana.

 

For the latest news and resources about COVID-19, bookmark our Coronavirus In Indiana page here.

Contact reporter Samantha at shorton@wfyi.org or follow her on Twitter at @SamHorton5.

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