Flash index dips for second straight month

Flash index dips for second straight month

URBANA — The University of Illinois flash index has fallen for a second straight month after hitting a fiscal-year high of 107.1 in April.

The index, which measures the Illinois economy, dropped to 106.4 in June, down from 106.5 in May, according to the UI's Institute of Government and Public Affairs.

J. Fred Giertz, who compiles the index for the institute, said the state economy has registered steady, moderate growth over the past 12 months.

The index has remained well above 100 — the dividing line between growth and decline — for the entire fiscal year.

The flash index is a weighted average of Illinois growth rates in corporate earnings, consumer spending and personal incomes, as measured by tax receipts on corporate income, retail sales and personal income.

Both individual and corporate income tax receipts were up in June from the same month last year, when adjusted for inflation. Sales tax revenue was down slightly.

"After a slow first quarter for the national economy, most observers expect stronger growth in the second half of the calendar year," Giertz said.

"Illinois' current budget impasse has no direct effect on the flash index, although a longer stalemate could affect the index in future months," he added.

Giertz said economic growth has finally begun to affect the state's unemployment rate. The unemployment rate in Illinois recently reached a post-recession low of 6 percent, compared with 7.1 percent a year earlier.

Sections (2):News, Business
Topics (1):Economy

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Reykjavik wrote on July 01, 2015 at 6:07 pm

The title of article "flash index dips for second straight month..." could also be "flash index shows Illinois economy continues to grow for yet another month."  I dont understand the negative slant on very positive news.