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Business trends: Growth slows for the summer
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Slow growth continues for the greater Grand Rapids industrial
economy, according to results of a monthly survey compiled by Brian G.
Long, director of Supply Management Research in the Seidman College of Business.
The survey results are based on data collected during the last
two weeks of August.
The survey’s index of business improvement, called new orders,
eased to +9 from +18. The production index remained strong at +22 from
+25. The employment index rose to a 16-month high of +26, up from +15,
and the index of purchases eased to +5 from +19.
Statistics for business optimism continue to show stabilization,
according to Long. He noted the short-term business outlook index
eased to +20, down from +27. However, the long-term business outlook
posted a modest increase to +42, up from +34. Long said the level of
optimism for this index has retreated considerably in recent months,
given the +64 reported less than a year ago.
“The automotive parts producers are in full swing for the 2015
model year, although a few have expressed reservations about
production schedules for early 2015,” said Long. “The office furniture
business remains positive, but just like last month, the smaller firms
are outpacing the larger ‘integrated’ firms. August is usually an off
month for the industrial distributors, so it was good to see that most
firms reported business to be fairly steady this year.”
The Institute for Supply Management survey is a monthly survey of
business conditions that includes 45 purchasing managers in the
greater Grand Rapids area and 25 in Kalamazoo. The respondents are
from the region’s major industrial manufacturers, distributors and
industrial service organizations. It is patterned after a nationwide
survey conducted by the Institute for Supply Management. Each month,
the respondents are asked to rate eight factors as “same,” “up” or
“down.” An expanded version of this report and details of the
methodology used to compile it are available.
For more information, contact Brian Long at (269) 323-2359.
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