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Index Suggests Continued Economic Contraction
The Illinois economy continues to contract.

This is the verdict of the Flash Index, published by the University of Illinois at the start of each month. It's at 94 for May, down from 95.3 in April. Numbers below 100 indicate economic contraction.

Economist Fred Giertz says this was expected, given that the nation's gross domestic product declined by 6 percent during the first quarter of 2009.

The index is at its lowest point since 1992, when it was 92.2. Giertz expects the index to fall to or near that point, but not to fall as far as 86.2, the low point of the 1983 recession.

Giertz says there are signs that the economy is picking up, with financial markets stabilizing, the stock market picking up and consumer spending rebounding, but he says it will be three to six months before those gains materialize and are picked up by the index, which is based largely on state tax collections, which are indicative of actual income and actual sales, not just prospects.

(Illinois Radio Network)
05 01 09 by Newsroom
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