Local economy continues modest growth pattern

The greater Grand Rapids industrial economy experienced modest growth in January, 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 January. 
The survey’s index of business improvement, called new orders, was unchanged at +13. The production index remained positive but retreated to +13 from +19. In a similar move, the employment index eased to +19 from +13 last month.

"Although numbers remain positive, many of our local industrial groups reported mixed results for January,” said Long. “The automotive parts producers continue to do well, although a couple of firms have reported that some segments of their business have flattened out or declined.

"Some segments of the office furniture business have also turned mixed, partially because of the rush toward the end of the year to use up budgets which shifted sales to December from January. However, Mike Dunlap’s January Furniture Industry Index came in at the second best level since July of 2007."

The national unemployment rate is 5.6 percent and the unemployment rate in Michigan is 6.3 percent. Long said there has been steady improvement in the West Michigan unemployment numbers.

“The Kent County jobless rate fell to 3.4 percent, the lowest it has been in 17 years,” he said. “In Kalamazoo County, the rate of 3.9 percent unemployment was last seen in July 2002. Ottawa County came in at 3.6 percent.”

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.