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Illinois Economy Contracting - Rate Slowing Down
The Illinois economy is still in contraction mode, but the rate at which it is falling has slowed.

The University of Illinois Flash Index is 94.1 - still below 100, indicating economic contraction, but up 1/10 of a point from May, says economist Fred Giertz. He cautions against getting excited over such a small uptick, but he says at least the decline has started to slow down.

This month's increase breaks a string of nine months of decline. Last month's reading of 94.0 was the lowest in 17 years.

Giertz says the recession won't end until either late this year or early next year, but consumers and businesses are viewing their economic prospects more optimistically, because it appears as though the financial system has stabilized.

The Flash Index takes into account corporate earnings, consumer spending and personal income, adjusted for inflation, to provide an assessment of the comparative rate at which the Illinois economy is declining or growing.

(Illinois Radio Network)
06 02 09 by Newsroom
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