State’s Economy Slowed Down in October

By Benjamin Cox on November 2, 2021 at 8:19am

A state economic growth tool says Illinois’ economy has slowed down over the last month.

The University of Illinois Flash Index in October fell by a half a point over the month. The index uses various metrics, including corporate earnings, consumer spending, and personal income, to measure the level of economic activity around the state. Any reading above 100 indicates growth. Last month’s reading was 105.4, down from 106 in September.

U of I economists say the decline in Illinois followed the broader national pattern of a slowing recovery from the short, but sharp COVID-19 recession of 2020. U of I economist J. Fred Giertz says that the drop is also likely the result of the return of some restrictions because of the emergence of the Delta variant, along with supply chain bottlenecks. Giertz says that supply chain problems are also expected to ease, although more slowly than anticipated.

Giertz says the rest of 2021 remains clouded, but room for optimism with the state’s economic growth remains for next year.