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Flash Economic Index holds steady for third straight month
J.
Fred Giertz, Institute of Government and Public Affairs 217-244-4822
Mark Reutter, Business Editor 217-333-0568
7/1/2003
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 Illinois economy.
CHAMPAIGN, Ill. — The University of Illinois Flash Economic Index
remained at 96.7 in August for the third straight month.
While the national economy appears to be picking up speed, the Illinois
economy remains in neutral as measured by the Flash Index. "There
has been a slight improvement compared with a year ago, but the state
economy is still below the Index’s 100 dividing line that marks
real growth," said J. Fred Giertz, the Illinois economist who released the Flash reading today.
The Index has been below the 100 mark since May 2001.
Giertz said that improvements in the national economy may not have filtered
down to Illinois state tax collections, which are the key components
of the Flash Index. Of the three components of the Index, individual
income tax collections were up slightly last month compared with August
2002, while corporate sales taxes were down by a small amount.
The Flash Index is a weighted average of Illinois growth rates in corporate
earnings, consumer spending and personal income. Tax receipts from corporate
income, personal income and retail sales 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.
