Confidence In Housing, Auto Sectors Boosting Indiana Economy

The Leading Index for Indiana is at its highest point since June of 2007, buoyed by growing confidence in the housing and automotive sectors. 

Business Research Center research director Timothy Slaper says the housing market index – measuring home builders’ sentiment – is at its highest level since 2005, with increased traffic in model homes and stronger credit among those applying for mortgages.  And Slaper says there are significant economic ripple effects from an uptick in housing construction.

“Home construction leads to not just framing a building, but it also means you have to put appliances in there, carpeting, flooring, windows, all the rest of it,” hesaid.

Slaper notes that confidence and optimism among small businesses and consumers has stalled, suggesting to him that they’re taking a “wait-and-see approach."

“Won’t be too long before we have a mid-year election, and that might have a big impact on people’s confidence and small business operating conditions," Slaper said. "I can see why they might be holding their breath.”

Still, Slaper says all economic measures are moving in the same, positive direction.