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MoneyWednesday, August 15, 2007 11:48 PM CDT
McLean Co. economy slowed in early 2007
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BLOOMINGTON -- McLean County's once-surging economy slowed early this year, according to the first quarterly economic index released by the Economic Development Council of the Bloomington-Normal Area.

The index gauges overall employment, employment by sector, manufacturing activity and passenger traffic at the Central Illinois Regional Airport to provide a snapshot of the state of the McLean County economy.

The current first-quarter index, covering January through March, hit 170.46, the EDC said. That's a 70 percent increase from a base of 100 in 1990, the earliest data available, but a 0.33 percent decline from the fourth quarter of 2006.

"I'm not surprised. Housing is going to be an issue," said EDC Executive Director Marty Vanags, referring to the economic effects of a national cooling in the real-estate market.

In other economic indicators, airport traffic continued to grow in the first quarter, while overall employment in McLean County dropped 2.33 percent. Employment in transportation and utilities fell 4.11 percent, while job figures in manufacturing, education, health and professional services remained flat.

James Payne, chair of the ISU economics department, said it was not uncommon for employment to fall during the cold months of the first quarter.

The first-quarter index, compiled with the Stevenson Center for Community and Economic Development at Illinois State University, was scheduled to be released in June but was delayed. The second-quarter index should be released in early September, Payne said. There's a two-month lag period in the index due to the availability of data from state and federal agencies.

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Reader comments on this story - 5 total

Note: All views and opinions expressed in reader comments are solely those of the individual submitting the comment, and not those of the Pantagraph or its staff.

Scooter from the east side wrote on Aug 15, 2007 9:24 PM:

" The economy in my neighborhood is just fine. In fact, I think my neighbor and I will take another shopping trip to Oakbrook soon. "

Fatso wrote on Aug 15, 2007 1:07 PM:

" If I wanted to take the life signs as to what's going on out there in the real world, my inclination would be to listen to Mr. Lee Scott of Wal-Mart. According to him, HIS customers are just about tapped out. (And if Wal-Mart customers are tapped out, what's next?) Consider a Jan. '07 report from the Congressional Budget Office. Between 1979 and 2004, after tax income increased as follows: The lowest 1/5th ($13,900-14,700) increased 6%. The second 1/5th ($28,000-32,700) increased 17%. The Middle 1/5th ($39,900-48,400) increased by 21%. The Fourth 1/5th ($52,300-67,600)by 29%. The top 1/5th ($92,100-155,200) by 69%. And the top 1 percent ( $314,000-867,800) by 176%. Maybe this should be interpreted as good news. By everyone except Mr. Scott. "

To: Crybaby wrote on Aug 15, 2007 10:15 AM:

" First of all, the first quarter showed a SLIGHTLY negative dip, and Jim Payne, the professor at ISU who was part of the study, said this is not uncommon for the cold months. The major thing is that the economy has increased 70 percent since the baseline at 1990. Second of all, why are you attacking the EDC? They are a non-profit organization and are just doing their job with this study. "

Crybaby wrote on Aug 15, 2007 9:11 AM:

" Well, if you want a good paying job, lots of happy talk and a job that entails cranking out nothing but great news, apply at the Economic Development Council. And shame on WalMart for recently wandering too far off the 'happy talk' reservation. Business is down: and WalMart CEO Lee Scott even urged Congress in 2005 to raise the minimum wage. So that his customers don't have to struggle from paycheck to paycheck. This is definitely not great news. Imagine: a world where the largest retailer of Chinese made products thinks that even THEY are getting too expensive. There is, however, a silver lining in all of this. Rumor has it that first time homeowners will soon be able to order a complete home kit from China. If, that is, and as Lee Scott suggests, Congress will again raise the minimum wage. That will just about make the new kits affordable. "

yo wrote on Aug 15, 2007 7:24 AM:

" It just kills me that it takes Economic Development Council to tell people that the economy has gone down hill. Just drive around the area and see all those new home with the sale sign in front of them that have been there for a year or more. Go past the stores and the parking lots are not always full. People spent more money on gas and less on things they really did not need like new toys, etc. This will not change till the price of gas goes down or hybrids take over and we have more money to spend or till the area gets more businesses in that hire people with good paying jobs. "

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