Illinois’ economic growth rate held steady in November, according to the University of Illinois Flash Index. The economist who compiles the index says that’s good news after seven months of decline.
The Flash Index was at 103.7 for a second month in a row in November. The pause comes after the index fell from a peak of 106.1 in March. The lower numbers mean the Illinois economy continues to grow, but at a slower rate. A number below 100 would indicate economic contraction.
U of I economist Fred Giertz compiles the Flash Index for the university’s Institute of Government and Public Affairs, based on Illinois tax receipts. He says corporate tax revenues were exceptionally strong in November, but that revenue from sales taxes and individual income taxes was strong as well.
“Both of those exceeded (revenues from November of) the year before, including the effect of inflation, so it was very strong,” said Giertz. “And most people have expected the revenue bump that we’ve been experiencing to kind of wain now, because it’s been so strong over the last 18 months or so. But this actually is a continuation, so relatively good news.”
Giertz says Illinois’ economy follows the national economy, except that the state’s unemployment rate tends to run higher than the nation’s. The updated national unemployment rate for both October and November was 3.7%, while Illinois’ October jobless rate came in at 4.6%. Giertz says that’s pretty good compared to past years, but it’s currently the highest unemployment rate among the 50 states.
