Report says Indiana could shrug off any US economic slowdown

INDIANAPOLIS (AP) - An economic projection by Indiana University shows the state's economy is expected to remain solid next year despite a possible slowdown nationwide.

The Kelley School of Business' annual economic forecast, released Thursday, shows demand for Indiana-made goods could help the state avoid a potential national slowdown, the Indianapolis Star (http://indy.st/2fgQHcb ) reported. Indiana also benefits from having a diversified manufacturing base, including the production of advanced materials such as pharmaceuticals.

The report said some of the state's strongest economic activity comes from the Indianapolis area and reflects a broader growth in urban economies while more rural economies continue to struggle.

According Kyle Anderson, a clinical professor of business economics at Indiana University, low unemployment and continued growth could lead to a raise in wages and that low interest rates could motivate people to build homes.

Bill Witte, associate professor emeritus of economics, said the U.S. economy has underperformed during 2016, but that the economy will match next year and could possibly do a little better.

"Indiana has trailed the United States in GDP growth in four of the past five years but is expected to grow at a slightly faster rate than the U.S. through 2018," said Timothy Slaper, research director of the Indiana Business Research Center.

The experts project the nation's output growth to average slightly above 2 percent in 2017.

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Information from: The Indianapolis Star, http://www.indystar.com