Monthly Indicator of State’s Economy Shows Gradual Improvement
A quick look at the state's overall economy shows improvement from the recession, but at a painstakingly slow pace.
The author of the monthly University of Illinois Flash Index says March marked the 11th consecutive month of improvement at 96.3, up two-tenths of a point from a month earlier. Anything below 100 still indicates a decline.
U of I economist Fred Giertz cites a January unemployment rate, both statewide and nationally - of 8.9 percent, as well as job growth in the private sector. But Giertz says Illinois is still a long way from where it wants to be, noting the difference between the current recession and those of recent years.
"It was also accompanied by a financial panic," he said. "A lot of people have noted those kind of situations, which occur very rarely, are also much more difficult to recover from. So we're not going to bounce back the way we did in 2001 or 1990."
The flash index is made up of individual and corporate tax receipts through the end of the month. Giertz says the tax hike passed by the legislature in January presented a challenge for him. He says those numbers had to be adjusted to reflect the overall economy, and not solely the higher rates. "So the fact is once you do that, the growth is a whole lot slower than you might think by just looking at the numbers themselves." said Giertz.
Because corporations file tax returns at different times, Giertz says it will take some time before the impact of the tax increase is fully realized.