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U. of I. Flash Index rose slightly in January, continuing upward trend
J. Fred
Giertz, Institute of Government and Public Affairs
217-244-4822
2/1/05
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 continued its
recent strong performance by rising slightly to 103.1 last month from
103.0 in December.
Since September, Flash readings have been above 100, the dividing line
between growth and contraction, indicating that the Illinois economy
is expanding at a steady pace. A year ago in January, the Flash stood
at 98.5.
Individual income-tax receipts were especially strong in January, “suggesting
that this is no longer a ‘jobless’ recovery,” said
J. Fred Giertz, the Illinois economist who released the data today.
Sales-tax receipts were up slightly in real (inflation-adjusted) terms
compared with a year ago, while corporate-tax receipts were relatively
weak in a month when revenues are traditionally low.
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 late January.
