By Illinois Radio Network

SPRINGFIELD – Illinois’ economy grew in the third quarter of 2019, but at a slower pace than the national average, something the state’s leading manufacturers’ group said was due in part to the state’s business and tax policies.

U.S. Bureau of Economic Analysis gross domestic product data showed Illinois grew by 1.4 percent in the third quarter of 2019. That’s faster than Delaware, which didn’t grow at all, but much slower than Texas’ 4 percent growth. The national average was 2.1 percent.

Illinois Manufacturers’ Association President Mark Denzler said the overall outcome was mixed with nondurable goods growing by 7.7 percent.

“Durable goods, which are generally products that are kind of heavier products used over a period of time, shrank by a little bit. Part of that might be attributed to the beginning of the [General Motors labor union] strike,” Denzler said. “But overall, Illinois can and should be doing better.”

Denzler said Illinois has plenty of positive attributes.

“Our central location, our good universities, our workforce, access to water,” Denzler said. “You know we have so many good things going that we should be leading the midwest and the nation in job growth and economic expansion, however, we continue to lag.”

The U.S. Bureau of Economic Analysis data showed other states’ economies were growing faster. Neighboring states Missouri grew 2.4 percent and Indiana grew 2.3 percent. Iowa grew at 1.3 percent in the fourth quarter of 2019.

“Illinois companies face the same challenges federally, they face the same challenges across the United States,” Denzler said. “The difference is state policies.”

Denzler said Illinois has the second-highest property taxes, the prospect of a graduated income tax, high sales tax rates, and high workers’ compensation costs. Those, along with other mandates, make Illinois less attractive for businesses. He said he was frustrated to see some in the legislature pushing for even more burdensome labor and tax policies that could hinder the growth of the state’s economy.

“If they would dedicate just a little more time focusing on good high paying jobs like those in manufacturing, our state would be doing a whole lot better,” Denzler said.

State lawmakers return to Springfield next week for the start of the spring session.

The next state-specific quarterly GDP report from the U.S. Bureau of Economic Analysis is set to be released on April 7.

Illinois Radio Network can be reached at [email protected].