Business trends: moderate growth continues

The economic growth rate in West Michigan improved for a third consecutive month in May, according to Brian G. Long, director of Supply Management Research in the Seidman College of Business at Grand Valley State University.

Long surveyed local business leaders; his findings are based on data collected during the last two weeks of May.

The survey's index of business improvement, called new orders, remained strong but backtracked to +31, from April's +37. The employment index, which has remained strong for the past year, remained virtually unchanged at +24. The production index rose slightly to +29 to from +28. The index of purchases eased to +24, down from +32.

"Overall, the West Michigan economy has clearly shaken the mediocre performance of the winter months to show three solid months of strength," said Long. "With the economic fundamentals for West Michigan still firm, the outlook for the next few months remains positive."

Long said the employment index for West Michigan has shown consistent improvement for the past 14 months and May was one of the stronger months in recent history for the office furniture industry.

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 at www.gvsu.edu/scblogistics.

For more information, contact Brian Long at (269) 323-2359.