Economic Update For Illinois's Metropolitan Areas:
A Focus On Strikes And Gambling

By JOHN B. CRIHFIELD and MIGUEL GOMEZ

Economic activity measured by consumer spending quickened in the second quarter. Spending in Illinois grew at an annual rate of 5.6 percent after inflation in the April through June period compared to the same period a year ago. By comparison, first quarter growth stood at 5.3 percent. Spending in the collar counties around Chicago grew the fastest, as has been the case since 1991.

Outcomes varied widely around the state. Spending surged 41 percent in Massac County, site of a riverboat casino in Metropolis. Inflation-adjusted spending in Metropolis skyrocketed 77 percent. However, spending plunged in two neighboring counties, by 8 percent in Pope County and 11 percent in Pulaski County. Southern Illinois counties represent small economies, and even small dollar amounts can be large in percentage terms.

Among metropolitan areas, Rockford led the way during the second quarter, with inflation-adjusted spending growing 10.3 percent. However, this followed a very sluggish first quarter. Growth in other Illinois metropolitan areas in descending order were as follows: Joliet, 9.4%; Kankakee, 8.8%; Lake County, 8.7%; Aurora-Elgin, 7.6%; St. Louis (Illinois part), 7.0%; Peoria, 6.9%; Bloomington-Normal, 6.2%; Springfield, 5.8%; Chicago, 5.0%; Champaign-Urbana-Rantoul, 4.5%; Davenport-Rock Island-Moline (Illinois part), 2.9%, and Decatur, -6.9%.

It is frequently asked how riverboat towns fare relative to the rest of Illinois. People also wonder how labor strikes in Decatur, Aurora, East Peoria, and Pontiac have affected these city economies. Strikes have clearly affected local areas. Spending fell 9.9% in the City of Decatur and 1.4% in East Peoria. It grew 3.1% in Pontiac and 4.5% in the City of Aurora, but these rates are below the state average.

There are ten riverboat casinos in Illinois, eight of which are located in major metropolitan areas. Except for Rock Island and Peoria, these areas grew above the state average in at least three of the past four quarters. Growth in these riverboat communities is likely to dampen over the next few quarters, however, as spending flattens out at higher levels. Spending in Jo Daviess County, site of the Silver Eagle, declined 3.2% in the second quarter.

Spending grew more rapidly in urban areas than rural areas (5.7% versus 4.8%), and about the same in the greater Chicago area as downstate (5.6% versus 5.4%). Growth in Cook County (4.1%) was only half the rate of the collar counties.

Economic Activity in Illinois by Metropolitan Area:
1993 Qrt. 2 — 1994 Qrt. 2

Notes: Dollar values are for the second quarter (April, May, June) and are in June 1994 dollars. Data are from the Illinois Department of Revenue. Anaylsis is by the Institute of Government and Public Affairs, University of Illinois.

November 1994 / Illinois Municipal Review / page 23