Current business trends: Growth jumps higher
Oct 6, 2014
The greater Grand Rapids industrial economy experienced modest growth
for the first time in several months, with the employment index
hitting a three-year high, according to results of a monthly survey
compiled by Brian G. Long, director of Supply Management Research in
the Seidman College of Business at Grand Valley State University.
The survey results are based on data collected during the last
two weeks of September.
The employment index rose to a three-year high of +34, up from
+26. The survey’s index of business improvement, called new orders,
jumped to +27 from +9, and the production index remained strong at +29
from +22. The index of purchases edged up to +14 from +5.
“It is worth noting than none of our industries are currently
experiencing any significant difficulties,” said Long. “The automotive
parts producers are still in full swing for the 2015 model year. The
office furniture business remains positive, and actually showed a
little more strength in September than in previous months. August was
good for the industrial distributors, but so was September. For the
capital equipment firms, the usual fall uptick appears to be taking hold.”
Statistics for business optimism improved. The short-term
business outlook index edged up to +26, from +20, and the long-term
business outlook posted another increase to +51, up from +42. Long
said businesses are anticipating more growth and positive sales which
means they will invest in more equipment and people.
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.”
For more information, contact Brian Long at (269) 323-2359.
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