It’s more of the same slow growth for Illinois, according to the latest Flash Index from the University of Illinois’ Institute of Government and Public Affairs.
Economics professor Fred Giertz says January’s Flash Index is confirmation of a slowing economy for Illinois.
“It’s sort of a situation now where everyone is concerned about the state, U.S. and world economy, but right now we’re still growing,” Giertz said, “but we’re growing at a slower rate.”
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As to the cause of the slowdown Giertz says that’s from a number of factors including a slowdown of the global economy, in particular China, and uncertainty within the financial markets.
However, Giertz says another factor that’s more difficult to determine is the impacts from the seven-month-old state budget impasses.
“Right now it’s not clear if it is,” Giertz said of the budget impasse impacts on Illinois’ economy, “but it is also very likely that it will have an impact if it keeps going on.”
Overall, Giertz said the Index of 105.3 doesn’t indicate things are going to get a whole lot worse, “but it means there doesn’t seem to be any indication of a more rapid recovery right now.”
“Again,” Giertz said, “it’s not a very precise message, but the message is we’re kinda where we’ve been the last month or two is probably where we’re going to be a few months into the future.”
The Flash Index is compiled using monthly data from the Illinois Department of Revenue to provide estimates of economic activity in the state. An index of 100 is the dividing line between expansion and contraction.