IU Kelley School of Business Leading Index for Indiana moves up

IU Kelley School of Business’ Leading Index for Indiana moved up 0.2 points to 100.9, according to a press release.

The Housing Market index, a component of the LII, continued to rise and the transportation component of the index fell.

“U.S. consumers pulled back some of their optimism about the future economy, but they are still upbeat about current conditions,” said Timothy Slaper, director of economic analysis at the Indiana Business Research Center in the IU Kelley School of Business. “And while job creation plans for small businesses increased slightly in June, expectations for improved business conditions remained negative.”

The IBRC produces the monthly index, according to the release.

The National Federation of Independent Business’ Index of Small Business optimism cooled somewhat, according to the release.

The monthly economic index retreated 0.9 points to 93.5, seven points below the pre-2008 average.

The preliminary Thomson-Reuters/University of Michigan index of consumer sentiment for July fell from a June reading of 84.1 to a July reading of 83.9, according to the release.

“The NFIB index has been in a seesaw for months,” Slaper said in the release. “There is no reason for small employers to be more optimistic and lots of things to worry about.”

Growth was reported in the American Institute of Architects Billings Index, with architecture firms reporting growth in nine of the past 10 months, according to the release.

The report suggests future workloads will continue to expand in lieu of inquiries for new design projects pointing to modest acceleration.

“There are some worrisome signs, however,” Slaper said. “The Midwest did not participate in the upturn, as the ABI reading for firms in this region fell to 47.5 — its second straight monthly decline.

“Another concern is rising interest rates. Higher rates would slow the home building recovery and negatively affect nonresidential construction activity, since higher financing costs could adversely affect the feasibility of some construction projects.”

– Makenzie Holland