NEWS INDEX Archives 2004 December

Flash Index of Illinois Economy registers slight dip in November

J. Fred Giertz, Institute of Government and Public Affairs
217-244-4822

Mark Reutter, Business Editor
217-333-0568

12/1/04

EDITORS, NEWS DIRECTORS: The Flash Index of Economic Growth, produced by economists at the University of Illinois, is based on the most up-to-date information on the Illinois economy.

CHAMPAIGN, Ill. — The University of Illinois Flash Economic Index dropped slightly last month to 102.4 from its 102.6 reading in October.

The results suggest that the Illinois economy is maintaining the momentum that began in September when the Index moved well above 100 for the first time since the 2001 recession, said J. Fred Giertz, the University of Illinois economist who released the data today.

Readings above 100 indicate economic expansion. The Flash level is in line with national data that suggest continued moderate expansion for the economy.

Sales-tax receipts were up slightly in real (inflation-adjusted) terms compared with November a year ago, while income receipts were down slightly.

After several months of strong performance, corporate receipts fell below last year’s levels. However, November is typically a slow month for corporate tax receipts.

The Flash Index is a weighted average of Illinois growth rates in corporate earnings, consumer spending and personal income. Tax receipts from corporate income, personal income and retail sales are adjusted for inflation before growth rates are calculated. The growth rate for each component is then calculated for the 12-month period using data through Nov. 30.