Flash Index Shows Improvement in September

The latest reading of the University of Illinois Flash Index shows some improvement in the Illinois economy. The Flash Index was at 98.8 for September, up one point from where it had been for the past three months. That number still shows the state's economy to be contracting --- the Index needs to break 100 to show economic growth. But 98.8 is the highest Flash reading since December of 2008.

Economist Fred Giertz of the U of I's Institute of Government and Public Affairs says the September improvement suggests that fears of a double-dip recession in Illinois may be overblown. But he cautions that results for a single month may be due to "transitory factors".

The Flash Index is based on income, corporate and sales tax receipts in Illinois. Giertz says revenue from all three taxes were up in September compared to a year ago --- after being adjusted for recent increases in tax rates.