One Economic Index Continues its Long, Slow Creep Up
It may be a long, difficult path to recovery for the Illinois economy according to one indicator.
Each month the University of Illinois Flash Index measures tax revenue to give a snapshot of the state's economic performance. Author Fred Giertz says in February the index inched up to 91.5 after two months at 91.2. The reading is well below the dividing line between growth and contraction, and it's been there for the last year and a half.
Giertz says corporate tax receipts in Illinois are showing signs that the recession is breaking, but that hasn't started translating into more employment.
"The stock market has gone up a lot in the last year because of expectations, and businesses are actually starting to do better," Giertz said. "But the problem is that they're not doing as much hiring now because more efficient during the downturn and they don't need as many people to produce the goods (and services) as they did in the past."
Giertz says many observers predict a very slow decline in unemployment rates over the next year, even as the economy improves.