Current business trends: Slow growth continues
Aug 7, 2014
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 July.
The survey’s index of business improvement, called new orders,
eased to +18 from +23. The production index tapered to +25 from +30.
The employment index remained stable, unchanged at +15, and the index
of purchases remained unchanged at +19.
“Locally, the pattern established in 2009 as the recession
recovery began remains virtually unchanged,” said Long. “The
automotive parts producers continue to provide much of the drive
behind the recent economic growth, although some firms have clearly
done better than others. Several are continuing to expand, while
others prefer maintaining their present size.”
Long said the office furniture business remains positive, with
some of the smaller firms outpacing their larger counterparts. He said
while industrial distributors had a very good month, the capital
equipment industry appears to be having some difficulties. “There is
no evidence that the weakness demonstrated by some firms is the
beginning of a downward trend,” he said.
The statistics for business optimism are showing signs of
stabilization after last month’s unexpected drop, according to Long.
He noted the short-term business outlook index rose to +27, up from
last month’s +21. However, the long-term business outlook edged lower
to +34, down from +36. Long said the level of pessimism for this index
has grown considerably, given the +64 reported less than a year ago.
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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