The Indiana Business Research Center at Indiana University's Kelley School of Business) announced the creation of a new economic index that will enable Hoosiers to better understand market conditions in the state.
In developing the LII, center researchers created a composite index of current economic activity in Indiana and identified economic indicators that predict changes in several key economic sectors in Indiana.
The IBRC will release the LII monthly. A complete explanation of the Leading Indiana Index and its development can be found online at http://www.ibrc.indiana.edu/ibr/, along with articles about Indiana per-capita income and the "green economy" in the state.
Three of the five components that make up the index moved up in August, but the dip in the auto sector resulted in no movement in the composite index. The decline in the auto sector component of the LII comports with the Chicago Fed Midwest Manufacturing Index (CFMMI) auto sector component. The CFMMI decreased 0.3 percent in August, with Midwest regional auto production dropping 4.2 percent.
The flat LII in August and the recent Bureau of Labor Statistics announcement of greater than expected job losses in the month of September should make one pause before popping open Champagne to celebrate the end of the recession.
Source: Indiana University