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IU Economic Forecast: Nation To Blame For Slow Indiana Growth In 2016

Indiana University
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Indiana University’s Kelley School of Business reports the national and global economic struggles are hitting Indiana’s economy.

The school’s 2016 Economic Forecast says the business investment and government sectors are behind, which will contribute to growth next year that’s expected to be a few tenths of a percent below average. IU Economic Analysis Director Tim Slaper says policy uncertainty in Washington also negatively affects economic growth.

“Overall, the economy seems to grow at about 3-percent, plus or minus, and we’ve been below that. You expect a big bounce back after the likes of the Great Recession and we didn’t see that.”

But, Slaper says, there’s also some good news.

“On the upside, we’re still seeing strength in the auto sector,” Slaper says. “We’re on track to hit over 18 million units this year, which bodes well for the state and the fact that consumer optimism clicked up about three points.”