SPRINGFIELD, Ill. (IRN) – A University of Illinois study indicates the state’s economy is expanding for the first time since 2008.
The monthly U. of I. Flash Index gave Illinois’ economy a score of 101. Anything above 100 indicates economic expansion; anything below 100 means contraction. Economist Fred Giertz, who compiles the Flash Index, says 101 indicates slow growth – so there’s still work to do.
“It doesn’t magically mean everything’s fine once you get above 100. But what actually pushed us above the 100 mark was a combination of strong tax receipts and all three components of the index,” says Giertz.
The Flash Index compiles data from corporate earnings, consumer spending and personal income. Giertz says the index should read between 103 and 105, which would indicate sustained economic growth. Scores higher than that might mean unsustainable growth, as experienced in 2006 and 2007.
The March score of 101 compares to 99.2 for February. The index hit its lowest point in September 2009 when the Illinois economy scored a 90.