The Herald Bulletin

Morning Update

Local Business

November 22, 2013

Anderson, Kokomo top state in economic growth

Local economy climbed 2 percent in 2013

Anderson is one of two Indiana cities that experienced accelerated economic growth from 2012 to 2013, according to a national study.

The study released through the U.S. Conference of Mayors and performed by IHS Global Insight showed only Anderson and Kokomo had a significant upturn in economic activity.

The study found Anderson’s 2013 growth is 2 percent higher compared to a 1.6 percent growth rate in 2012, and Kokomo’s growth rate for the same period was 2.2 percent as compared to 1.6 percent.

Both cities are expected to see economic growth in 2014.

The IHS Global Insight study showed slowing economies for 2013 in Bloomington, Muncie, Fort Wayne, Indianapolis, Lafayette and Terre Haute.

The economic outlook for 2014 is anticipating growth in all Indiana cities except for Muncie, the study predicted.

The report said drags on the economy included the shutdown of the federal government, across-the-board federal spending cuts and slow growth in European economies.

Bob Tomarelli, an economist with IHS Global Insight, said the study looks at a total of all goods and services that are in a metropolitan area.

“We’ve seen nice growth in the Midwest and the South in the transportation sector,” he said.

Tomarelli said the shutdown of the federal government and the sequestration had a national impact, which was felt more in the areas around Washington, D.C.

Anderson and Kokomo had accelerated growth as compared to other areas of the state that did show some economic growth from 2012 to 2013.

Anderson’s growth of 2 percent for 2013 is expected to remain at that level in 2014. The Kokomo growth is expected to climb from 2 to 4.7 percent in 2014.

“For Anderson I think this is a great encouragement that we have been able to pick up the pace of diversification and new investments to a point where we have accelerated past many other Hoosier communities,” Anderson Mayor Kevin Smith said Thursday. “The report talks about the potential that Anderson has.”

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