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UI
Flash Economic Index fell slightly in last month in a continued no-growth
pattern
J.
Fred Giertz, Institute of Government and Public Affairs,
(217) 244-4822
Mark
Reutter, Business Editor
(217) 333-0568; mreutter@illinois.edu
8/1/2001
EDITORS,
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
University of Illinois Flash Economic Index fell slightly in July to
98.3 from its 98.4 reading in June, indicating a continuation in Illinois
of a no-growth situation.
This is the third month in
a row with a sub-100
reading and the fourth in the last five months. For the UI Flash Index,
100 is the dividing line between economic growth and decline.
"A period of watchful waiting continues with the state economy
hovering between recovery and recession," said J. Fred Giertz,
a UI economist who released the Flash Index today (Aug. 1). "The
economy in Illinois and the nation still has not experienced the expected
rebound from the period of slow growth."
Growth nationally for the
second quarter was reported at 0.7 percent. "This is low by recent
standards, but still not in recession territory," Giertz said.
The technical definition of a recession is two consecutive quarters
(six months) of declining gross domestic product.
Corporate tax receipts in Illinois were up slightly last month, while
sales and income tax receipts were down. A year ago in July, the UI
Index stood at 102.6
An Index reading over 100 means that the state economy is expanding,
while a number below 100 indicates that the economy is contracting.
The Flash Index is a weighted average of growth rates in sales tax receipts,
individual income tax receipts and corporate earnings in Illinois. The
growth rate for each component is then calculated for the 12-month period
using data through July 31.
