Economic Update for Illinois' Metropolitan Areas: Third Quarter 1993

Economic Update for Illinois' Metropolitan Areas:
Third Quarter 1993
By JOHN B. CRIHFIELD AND MIGUEL GOMEZ *

The Illinois economy continued to expand during the third quarter of 1993. Inflation-adjusted retail spending grew at an annual rate of 3.1%, compared to 3.2% in the second quarter and 1.8% a year ago. Consumer spending in Illinois has risen for five straight quarters, and has risen for seven quarters in the collar counties around Chicago. Our analysis is based on detailed sales tax receipts from the Illinois Department of Revenue, representing all reporting establishments in Illinois.

As has been the case since early 1991, the collar counties continue to lead the recovery in Illinois with third quarter growth of 5.9%. Sales growth in downstate metropolitan areas follows at 4%, The pace in Cook County remains a sluggish 1.2%.

The fastest growth was registered in Decatur at 13.7%. However, Decatur has been the most volatile part of the state's economy for the past two years, with growth spurts alternating with spending declines. The consistently strongest growth has been in Joliet and Aurora-Elgin, two metro areas where floating casinos recently opened.

Metropolitan areas trailing Decatur, Joliet, and Aurora during the third quarter were Rockford (6.4%), Champaign (4.6%), Kankakee (3.9%), the Illinois counties surrounding St. Louis (3.8%), Rock Island (3.4%), Lake County (3.2%), Chicago (2.4%), Springfield (2.3%), Peoria (1.0%), and Bloomington (0,9%). Figures for total spending and for local sales tax receipts (metropolitan and county receipts, excluding state receipts) for all Illinois metropolitan areas are shown in the table.

*John B. Crihfield is an economist on the faculty at the Institute of Government and Public Affairs at the University of Illinois at Urbana-Champaign. Miguel Gomez is a graduate student in the Department of Agricultural Economics at the University of Illinois at Urbana-Champaign.

Economic Activity in Illinois by Metropolitan Area: 1992 Qrt. 3 - 1993 Qrt. 3

Metropolitan area	- Total Retail 1992 Qrt. 3	Spending - 1993 Qrt. 3	Percentage Change in Total Spending	Local Sales Tax Receipts
Illinois	20,861,696,607	21,513,749,387	3.1	215,137,494
Aurora-Elgin PMSA	532,623,936	571,802,791	7.4	5,718,028
Bloomington-Normal MSA	300,153,945	302,745,099	0.9	3,027,451
Champaign-Urbana-Rantoul MSA	309,856,669	324,255,149	4.6	3,242,251
Chicago PMSA	11,941,782,658	12,231,147,081	2.4	122,311,471
Davenport-Rock Island-Moline MSA	345,528,393	357,243,715	3.4	3,572,437
Decatur MSA	242,255,363	275,332,410	13.7	2,753,324
Joliet PMSA	581, 689,860	626,082,477	7.6	6,260,825
Kankakee MSA	168,586,016	175,196,389	3.9 .	1,751,964
Lake County PMSA	1,271,948,540	1,312,575,342	3.2	13,125,753
Peoria MSA	667,729,633	674,259,169	1.0	6,742,592
Rockford MSA	562,813,515	599,081,272	6.4	5,990,813
Rural Counties	2,664,184,799	2,748,903,572	3.2	27,489,036
Springfield MSA	404,487,706	413,894,991	2.3	4,138,950
St. Louis MSA	867,955,572	901,259,931	3.8	9,012,599

Notes: Dollar values are for the third quarter (July, August, September) and
are in September 1993 dollars. Data are from the Illinois Department of Revenue.
Analysis is by the Institute of Government and Public Affairs, University of Illinois.

Page 16 / Illinois Municipal Review / March 1994

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