Illinois Flash Index Improves in January
Illinois' economy is not growing yet, but it's one point closer to doing so, according to the University of Illinois's Flash Index.
The monthly reading of the state economy was at 95.9 in January, up from 94.9 in December. Any number below 100 reflects economic contraction. But U of I Economist Fred Giertz said the Index has shown gradual improvement over the past eight months.
"This is one of the bigger jumps," Giertz said. "Any one month, you have to be careful about it - it could be an anomaly. But it's going in the direction that's expected, of a substantial increase, which is what's happening at the national level."
Giertz referred to national economic figures, which showed a sharp drop in the unemployment rate in January, even though job growth was weak. Illinois's 9.3% unemployment rate for December was slightly better than the national rate of 9.4% --- although Giertz said both were high, considering the improving economy. Now that the national rate has fallen to 9%, Giertz said he wants to see how the new state numbers stand in comparison, when they're released in about a week.
The Flash Index is based on Illinois tax revenues. Giertz said January's improvement was due to growth in state income and sales tax receipts, rather than corporate taxes.