Economic indicators for southern Indiana show mixed results for 2005. Average employment in the Louisville Metropolitan Statistical Area (metro), and in southern Indiana in particular, increased for the second year in a row. Yet, indicators of consumer activity suggest that consumers may be starting to reign in spending. In this analysis, various measures of economic activity are examined for counties in the Louisville metro. Particular attention is paid to Clark, Floyd, Harrison, and Washington counties in southern Indiana and Bullitt, Jefferson, and Oldham counties in northern Kentucky. Four additional Indiana counties—Crawford, Jefferson, Orange, and Scott—in the southern Indiana labor market area are included when available.