Continued Slow Growth in Economic Flash Index
By Jeff Bossert
A monthly indicator of economic progress is showing very slow growth.
The author of the University of Illinois Flash Index says the unchanged figure of 102.9 in August is in a sense, good news.
But U of I economist Fred Giertz says it’s not growing fast enough to impact the unemployment rate. He calls Illinois' economic recovery the slowest since World War II.
“Even though we’re growing, we’re not creating enough new jobs to both absorb the new people who are leaving school and coming into the work force, and also bringing back the people who have lost their jobs in the past," he said. "So new jobs are not enough really to absorb the demand for the new jobs.”
Giertz says the two components making up the Flash Index, individual income tax and corporate tax receipts, were up slightly in real terms compared to the same month last year, while sales tax receipts fell slightly.
He expects continued slow growth over the next several months.