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'Modest slowdown' revealed
in latest Flash Economic Index
Business Editor (217) 333-0568; firstname.lastname@example.org
Giertz, Institute of Government and Public Affairs, (217) 244-4822
NEWS DIRECTORS: The Flash Index of Economic Growth, produced by economists
at the University of Illinois, is based on the most up-to-date information
on the state economy.
CHAMPAIGN, Ill. -- The growth
rate of the University of Illinois Flash Economic Index dropped slightly
last month, giving further evidence of a modest slowdown in the Illinois
economy, possibly the long awaited "soft landing."
The August reading was 102.3,
down 0.3 from July. The Index has declined slightly each of the last
three months from its recent high of 103.2 in April and May. The Index
stood at 103.1 in August one year ago.
As has been the case in
recent months, both sales tax and individual income tax receipts --
measuring consumer spending -- were up for August compared with the
same month a year ago, while corporate tax receipts declined in "real"
"The results of the Index
do not suggest any serious weakening of the state economy, only a reduction
in the high rates of growth of the past few years," said J. Fred Giertz,
a UI economist who released the Flash reading today (Sept. 5).
Mirroring the national economy
as a whole, Illinois is halfway through its 10th year of uninterrupted
expansion, the longest boom in history.
The Flash Index is a weighted
average of growth rates in sales-tax receipts, individual income-tax
receipts and corporate-earning receipts in Illinois. The receipts are
adjusted for inflation before growth rates are calculated. The growth
rate for each component is then calculated for the 12-month period using
data through Aug. 31. Any reading above 100 means the state economy
is expanding, while any number below 100 means the economy is shrinking.