Indiana economy shows small sign of progress in July

Indiana’s economy saw slight positive progress this month.

The Leading Index for Indiana, which measures the general direction of Indiana’s economy and is managed by the Indiana Business Research Center, increased by one-tenth of 1 percent to a score of 96.5 in July.

The small increase followed a big dip in the LII between February and June of this year. That dip eliminated all of the economic progress made between August 2010 and January 2011.

Analysts at the LII cited several factors for the meager increase in chances for Indiana’s general economy. Economists said confidence in the housing market rose slightly in July, but did not make up for a big drop in June.

Analysts also said that positive progress was made in the automotive sector with less orders going unfilled for parts and vehicles across the state; although, the positive effect was not large.

LII economists said Indiana’s transportation industry’s cumulative stock values fell slightly, and interest rates on 10-year treasuries fell as well, which economists at the LII say was one of the causes of the housing bubble.

The LII reached a peak value of 103.9 in April 2006 and plummeted to its lowest level of 94.6 in February 2009.

The LII — and Indiana’s economy — have been on a wobbly path to recovery ever since.

— Zach Ammerman