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Flash Index of Illinois economy falls for second straight month
Mark Reutter,
Business & Law Editor
217-333-0568; mreutter@uiuc.edu
J. Fred Giertz, Institute of Government and Public Affairs
217-244-4822
4/3/2006
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 fell in March to 105.9
from its 106.6 reading in February. The index has declined over the
last two months from its eight-year high in January of 107.1.
“The March reading suggests that the pace of economic growth in
the state has slowed, but the result is still strongly positive,”
J. Fred Giertz, an economist at the U. of I. who prepared the index,
said. “This is consistent with forecasts by most observers of
the national economy, who expect the economy to continue to expand,
albeit at a somewhat slower rate.”
Individual income-tax receipts in Illinois were up slightly in “real”
(inflation-adjusted) terms last month compared with March a year ago,
while
sales-tax receipts were down by a small margin. Corporate receipts were
virtually unchanged.
The Flash Index is a weighted average of state growth rates in consumer
spending, corporate earnings and personal income. Tax receipts from
these categories 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 March 31.
