Flash Index of Illinois Economy Drops Two Points in June
The University of Illinois' monthly gauge of economic performance has hit its lowest point since it was established 14 years ago.
But the author of the Flash Index says the current recession still hasn't reached the depths of the early 1980's economic slowdown. Economist Fred Giertz also says there are promising signs that the recession may be approaching an end, perhaps by the end of the year. Even so, Giertz says statistics before then are bound to get slightly worse.
"Some of the things that go into the Index don't turn around very rapidly," says Giertz, "in particular, employment, which has a lot to do with the individual income tax collections. So this is not a surprise. I think the only surprise would be that it went down a little bit more than might be expected."
The U of I Flash Index measures Illinois tax proceeds to evaluate the state of the economy. With any number above 100 suggesting economic growth, the June rate checked in at only 92. That's more than two points lower than May.