The Illinois Flash Index for December showed strength, rising to 102.4 from its reading last month of 102.
“While 2024 was eventful in the nation and world, the U S. and Illinois economies showed remarkable stability. After some delay, the inflation rate moderated while the unemployment rates in both the state and nation rose but remained low,” said Fred Giertz, Professor Emeritus, Institute of Government and Public Affairs, University of Illinois Urbana-Champaign. “The economy continued to grow at a reasonable rate. Talk of an imminent recession has nearly vanished. This may be the allusive soft landing.”
Illinois’ major state tax revenues, the primary drivers of the index, were strong in December. Both sales and individual income tax receipts were up in real terms from the same month last year while corporate receipts were down slightly. Nominal sales tax receipts recorded the highest monthly total in history, missing the one-billion-dollar level.
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. These revenues are adjusted for inflation before growth rates are calculated. The growth rate for each component is calculated for the 12 months using data through December 31, 2024.
“While 2024 was eventful in the nation and world, the U S. and Illinois economies showed remarkable stability. After some delay, the inflation rate moderated while the unemployment rates in both the state and nation rose but remained low,” said Fred Giertz, Professor Emeritus, Institute of Government and Public Affairs, University of Illinois Urbana-Champaign. “The economy continued to grow at a reasonable rate. Talk of an imminent recession has nearly vanished. This may be the allusive soft landing.”
