The monthly Flash Index provides a snapshot of the state’s economy. In December that picture showed the slowest economic growth Illinois has seen since March of 2013.
The state’s economy did continue to grow, but that growth slowed in a month when holiday sales typically provide a boost. Fred Giertz, who compiles the index for the University of Illinois’ Institute of Government and Public Affairs, says the budget impasse is not helping the situation.
“Uncertainty is not a good thing for the economy, and there’s a lot of uncertainty now. Uncertainty about if and how much taxes will go up, uncertainty about whether the state will cut back on various kinds of activities.”
Giertz says businesses tend to hold back on expansion in times of uncertainty. He says the longer the impasse drags on, the bigger the potential effect on Illinois’ economy.
