U of I Flash Index continues to trend upward

The University of Illinois’ Flash Index, a measure of the overall performance of the Illinois economy, recently reported an increase for the second month in a row in June.

The Flash index is “the weighted average of Illinois growth rates in corporate earnings, consumer spending, and personal income as estimated from receipts for corporate income, individual income, and retail sales taxes.”

A score above 100 indicates that the Illinois economy is growing. June’s numbers place the Index roughly where it was in January, after a downward trajectory throughout the first quarter.

Unlike in May, recent employment numbers showed the U.S. economy falling short of economists’ expectations. However, the unemployment rate dipped slightly to 4.2%, though this was primarily driven by 720,000 people leaving the labor force, dropping the labor force participation rate to 61.5%.

The most recent data shows unemployment in Illinois is still above the national average, sitting at 5.1%. However, June’s Flash Index numbers confirm a possible reversal of trend as we head into summer.

Consumers tend to spend more over the course of the summer months. With oil and energy prices on the decline, that may provide a jolt in consumer spending as we continue moving into the summer.