Leading Index for Indiana unchanged in April

The Indiana economy is still weighed down by winter’s recession-grade levels, despite positive growth in most sectors.

The Leading Index for Indiana, a measure produced by the Indiana Business Research Center in the Kelley School of Business to provide insight into the direction of the Indiana economy, did not change in April from its reading of 101.1.

There were gains in parts of the index, including manufacturing and
transportation, but these gains couldn’t move the index given that other components
were stagnant or especially low.

Small businesses and established businesses seem to be gaining confidence, said Timothy Slaper, research director of the Indiana Business Research Center, in a press
release Thursday.

Industrial production is also on the rise, up 0.7 percent in March and 1.2 percent in February.

Manufacturing saw continued gains marking 10 consecutive months of improvement. 

More vehicles and more homes are being sold.

Though most sectors show positive data, the number of people unemployed and the number of people employed part-time for economic reasons, known as the U3 and U6 gaps, are still above the level measured before the recession.

The Indiana economy seems to be continuing to bounce back from the recession, but there is still work to be done, Slaper said.

“Economic slack is disappearing based on three labor market indicators of temporary help services hiring, firms unable to fill job openings and a four-week moving average of initial unemployment claims,” he said.

“But then again, another measure of economic slack — the U6 and U3 gap — remains well above levels experienced before the recession.”

Anna Hyzy