UI Flash Index Drops Again, Recovery Not as Sure
The University of Illinois Flash Index recorded its lowest level since September.
The index fell in May to 90.6, its second consecutive month in decline following a six month increase. Fred Giertz of the Institute of Government and Public Affairs compiles the Flash Index. He said the drop isn't attributable to any one cause.
The recovery is kind of slowing and not as strong as people thought and hoped," Giertz said. "May was also a bad month for the stock market, so I think there's some lack of confidence now. It's been too much of a downturn. Next month it will be important to see where it goes from there."
Giertz says he expects the economy to get better but it will be a slow process. He says unemployment is still high and the state is going to experience a more painful recovery than it has experienced in recessions in roughly the past 20 years.
The Flash Index is a weighted average based on state corporate, personal income and sales tax receipts. Any number below 100 indicates economic contraction.