CHAMPAIGN, Ill. – The University of Illinois Flash Economic Index ended its three-month slide, increasing to 106.2 from its 105.1 level in April.
While the Index is still below its eight-year high of 107.1 reached in January, the May result suggests that the Illinois economy is still expanding at a good pace.
“This is consistent with national economic data indicating that the economy is growing strongly – enough, in fact, to cause some concern about the prospects for inflation,” said J. Fred Giertz, the Illinois economist who compiled the Index.
All three components of the Index were up strongly in real (inflation-adjusted) terms from the same month of last year. Corporate tax receipts registered the largest percentage increase.
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 May 31.
