Illinois one of only two states contracting

The Federal Reserve Bank of Philadelphia announced that Illinois is one of two states that experienced economic decline during the past three months

Ben VanMetre
Senior Budget and Tax Policy Analyst

The Federal Reserve Bank of Philadelphia announced that Illinois is one of two states that experienced economic decline during the past three months, according to an index that summarizes economic conditions for that time period. According to the report:

?In the past month, the indexes increased in 45 states, decreased in three (Alabama, Illinois, and New Mexico), and remained stable in two (Hawaii and Wyoming) … Over the past three months, the indexes increased in 46 states, decreased in two (Illinois and Wyoming), and remained stable in two (Alaska and Alabama).?

This index ? which is referred to as a coincident index ? combines four state-level indicators to summarize current economic conditions in a single statistic ? nonfarm payroll employment, average hours worked in manufacturing, the unemployment rate, and real wages and salaries.

With an unemployment rate of 9.5 percent, personal income growth that ranks 42nd in the nation, entrepreneurial activity and GDP growth that each consistently lag that nation, the worst unfunded pension liability in the country and the worst credit rating in the nation, it?s no surprise that Illinois is heading in the wrong direction while the rest of the nation prospers.