Current business trends: slow growth continues
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 at Grand Valley State University.
The survey results are based on data collected during the last
two weeks of June.
The survey’s index of business improvement, called new orders,
edged up to +23, from +20, still down from April’s +40, but
respectable. The production index jumped back to +30 from +16, which
corresponds to the June uptick recorded in previous years. The
employment index remained in double digits at +15, up from +14 and the
index of purchases rose nicely to +19 from +9.
“The automotive components manufacturers remain strong, although
a couple firms seem to have been disappointed with business that was
supposed to materialize but didn’t,” said Long. “The office furniture
business remains stable but flat, and contrary to some forecasts, is
not vastly exceeding last year’s performance. Smaller office furniture
firms are doing better than their larger counterparts. Industrial
distributors came in with a mixed performance and capital equipment
firms are stable, but some are doing very well at this stage in the
business cycle.”
Long said Kent County has the lowest unemployment rate (5.2
percent) among all 83 Michigan counties. Second place is claimed
jointly by Barry and Ottawa counties at 5.3 percent and Kalamazoo
County is in 11th place, posting a 6.1 percent unemployment rate for May.
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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