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Business development in Indiana improved in 2006 but was still much lower than the national average. Job growth in Indiana grew by only 0.7 percent by the second quarter of 2006, remaining lower than the national average. The service sector had a slow rate of growth, growing at only 0.9 percent, which is just over 19,000 jobs, compared to the country's job growth of 1.4 percent. However, the transportation industry is expected to grow, as Honda plans to build a half-billion-dollar auto plant in Decatur County, creating a large number of jobs in the area. Construction for this facility will begin in 2008.
The real estate market in Indiana has slowed down but still remains medium compared to the United States as a whole. The sale of single-family homes increased to approximately 4.8 percent by the second quarter of 2006, which, while not as high as 2005, is much higher than many other states. It should be noted that the sale of homes fell by 7 percent at the national level. Additionally, the appreciation of homes also slowed in 2006, falling from 5.2 percent in 2005 to 2.8 percent in 2006. Many homeowners in Indiana are facing high levels of financial stress, similar to those in Delaware. The number of foreclosures increased to 3.9.
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