Experts discuss economic future

A panel of experts discussed their cautiously optimistic economic forecasts for 2006 at local, state and national levels Thursday in Alumni Hall in the Indiana Memorial Union.\nPhil Powell, clinical associate professor of business economics and public policy, kicked off the discussion with an outlook on the U.S. economy for 2006. \n"The road for next year is uphill, and it's very cloudy with a lot of twists and turns," Powell said. Overall, he said he is "apprehensively optimistic" for the 2006 economy. \n"Households are getting kicked in the shins," because of higher oil prices and thus higher heating bills, Powell added. \nJohn Boquist, a professor of finance at IU's Kelley School of Business, spoke next on the nation's financial markets. Boquist predicted mortgage rates will be near 7 percent by next year and that corporate profits, which are on the rise, will continue to do so. Boquist also advised the audience to "diversify, own a little bit of everything. Don't put all of your eggs in one basket."\nJerry Conover, the director of the Indiana Business Research Center, was the next to speak. His discussion pertained to Indiana's economy, and he said despite an increase of 40,000 jobs this year, "the rate of increasing employment is abating." He also said jobs in the government and manufacturing sectors are decreasing. Conover added that 2006 looks to be a tough year on the farm industry, with fuel costs rising. In addition, he expects employment to increase by 30,000 jobs.\nLinda Williamson, head of Bloomington Economic Development Corporation, spoke next on the local economy. She spoke highly of the economy this past year, as she said it was a "tremendous year." In addition, she said the unemployment rate is "turning around" to 4.7 percent. She projects that in 2006 there will be additional job losses but a net growth overall. She spoke highly of the effect football coach Terry Hoeppner has had on the local economy, stating, "I believe coach Hoeppner is the rock."\nDean of the Kelley School of Business Dan Smith felt the discussion was of great value and very insightful. \n"Today's discussion was extraordinary," he said. "It's a special thing to serve the community. The Kelley School of Business and Indiana University have a responsibility to share intellectual knowledge with the community."\nThe discussion was hosted by the Bloomington Rotary Club, the Bloomington North Rotary Club, the Bloomington Sunshine Rotary Club, Bank One and the Greater Bloomington Chamber of Commerce.