John McCain has pulled to a solid seven-point lead over Barack Obama in Indiana. The latest Rasmussen Reports telephone survey in the state finds McCain leading 50% to 43%.

Last month, McCain had just a two-percentage-point lead in Indiana, which has been one of the most reliably Republican states in the nation. Parts of northwestern Indiana, however, are effectively suburbs of Chicago, Obama’s home base. During the Indiana Primary, strong turnout in this region almost enabled Obama to pull off an upset victory.

Nationally, Obama has been gaining ground in the Rasmussen Reports daily Presidential Tracking Poll ever since the turmoil on Wall Street began dominating the news.

This month, McCain leads 43% to 39% among unaffiliated voters in Indiana. He also leads 55% to 37% among men. Obama has a modest 48% to 46% advantage among women in the state (Premium Members can view full demographic crosstabs.)

McCain is viewed favorably by 59% of voters and unfavorably by 39%. Obama’s ratings are 50% favorable, 48% unfavorable.

Both candidates’ running mates are viewed slightly less favorably by Indiana voters. Joseph Biden is viewed favorably by 48% and unfavorably by 48%. Sarah Palin’s reviews are 57% favorable, 41% unfavorable.

Rasmussen Markets data shows that Republicans are currently given a % chance of winning Indiana’s 11 Electoral College votes this fall.

Not surprisingly, the economy is the top issue of the election for 50% of Indiana voters, with no other issue coming close. Voters in Indiana trust McCain more on this issue by a 48% to 41% margin. Nationally, voters are divided on which candidate they trust more.

Just eight percent (8%) of voters in Indiana rate the current economy good or excellent. Sixty-one percent (61%) give it a poor rating. While only three percent (3%) say the economy is getting better, 81% believe it is getting worse. Similar sentiments can be found nationwide in the Rasmussen Consumer Index. LINK

Voters say creating economic growth should be a higher priority than reducing the gap between rich and poor by a 64% to 25% margin. Most believe McCain agrees, while the majority thinks Obama takes the opposite view.

Investors, who make up 66% of voters in Indiana, favor McCain 56% to 39%.

President Bush earns good or excellent job approval ratings from just 28% of Indiana voters. Forty-eight percent (48%) say he is doing a poor job.

New statewide poll results from Alaska, Colorado,Florida, Missouri, Ohio, Pennsylvania and Virginia have been released this week and confirm the national trend favoring Obama.

See survey questions and toplines. Crosstabs available for Premium Members only.