Current business trends: Stronger growth returns
May 6, 2014
The greater Grand Rapids industrial economy experienced stronger
growth in April, according to the 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 April.
The survey’s index of business improvement, called new orders,
bounced to +40, up from +27. The production index posted a more modest
gain, and rose to +28 from +23. The employment index remained in
double digit growth but backtracked to +13 from +19. The index of
purchases was unchanged at +19.
“Our stronger statistics mean that there are no segments that are
doing poorly, although there are exceptions within each group,” said
Long. “Automotive parts suppliers remain strong, although a couple
firms backtracked because of the particular components they were
making. The integrated office furniture companies turned in a stronger
performance, and smaller firms are also doing well.”
Long said the employment numbers for West Michigan continue to be
better than the rest of the state. Among the unemployment rates in the
83 Michigan counties, Kent County reported the second lowest in
unemployment in the state in April, followed by Ottawa County at
number three. Kalamazoo County eased to fifth place. Between February
and March, Long said almost all of the counties in West Michigan
posted minor improvements in unemployment.
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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