Indianapolis.

• Author: Powell, Philip T.
• Position: Economic conditions - Statistical data

The following data and forecasts refer to the nine-county Indianapolis area, including Boone, Hamilton, Hancock, Hendricks, Johnson, Madison, Marion, Morgan, and Shelby counties. Unless otherwise noted, data comes from STATS Indiana at www.stats.indiana.edu, maintained by the Indiana Business Research Center at the Indiana University Kelley School of Business.

Income

Between the first quarters of 2005 and 2006, income growth impressively outpaced the rest of the country and reversed last year's local downward trend. Real average weekly compensation increased 5.1 percent in Indianapolis, compared to just 0.2 percent nationwide. (1) Both agriculture and manufacturing witnessed double-digit wage growth. Overall, compensation data suggest a 6.4 percent real growth rate in the local economy. Real growth in the U.S. economy over the same period was only 3.7 percent. (2) Between the first quarters of 2004 and 2005, economic activity in metropolitan Indianapolis shrank 0.5 percent. The Indianapolis economy posted an impressive turnaround in its ability to generate money.

Employment

Indianapolis lagged the nation in job growth. Between August 2005 and August 2006, local employment grew only 0.3 percent, compared to a 1.6 percent expansion nationwide. Local unemployment matches national unemployment at 4.6 percent of the labor force. Manufacturing employment shrank 1.1 percent and the number of management jobs fell 3.1 percent. The areas of highest job growth were agriculture at 4.5 percent, food service and accommodation at 4.4 percent, and construction at 3.3 percent.

Real Estate

Building activity is slowing like the rest of the country, but Indianapolis has not seen the fall in real estate value witnessed in other markets. Year-to-date building permits fell 17...