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The University of Illinois Flash Index continued its slow recovery in January, rising to 96.3 from its 95.9 level in December. This is well below the pre-COVID-19 level, but it is the highest reading since March 2020.
The January results suggest only modest gains for the economy because of the resurgence of the COVID-19 virus with the accompanying mandated closures. The index remains below the 100-dividing line between growth and decline.
“The availability of various vaccines has yet to have a significant impact on the spread of the virus,” said University of Illinois economist J. Fred Giertz, who compiles the monthly index for the University of Illinois System’s Institute of Government and Public Affairs (IGPA). “However, many observers believe the economy is on the cusp of a major resurgence resulting from the eventual effectiveness of the vaccine program along with strong pent-up demand in the economy.”

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