Local economy shows improved growth rate

The growth rate improved for the West Michigan economy during the month of March, 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 March.

The survey’s index of business improvement, called new orders, bounced to +29, up significantly from +13. The employment index rose to +25 from +19. The production index posted a respectable gain, rising from +18 to +35. The index of purchases came in at +35, up nicely from +16.

“It was not surprising to find that most of our industrial groups are seeing improvement,” said Long. “Despite auto sales showing signs of topping out, our local auto parts producers continue to attract additional business. The office furniture business is starting to come out of its seasonally slow period, and the improvement in rental of new office space in some of the big cities has helped to boost demand. As a group, the industrial distributors had a very good month. The only significant drag on this month’s report came from the capital equipment firms, several of which appear to have encountered a soft spot in the marketplace.”

Long said the short-term business outlook index bounced to +32, up sharply from February’s +18 and the long-term business outlook index posted a more modest gain, rising to +46 from +41.
“More importantly the comments from our participants were considerably more upbeat for March,” said Long. “It may have just been the fatigue of winter finally wearing off, although the same uptick in optimism may also be found at the national and international economic levels.”

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.