Slow growth continues for local economy

The West Michigan economy experienced slow growth in November, according to a report by a Grand Valley State University economist. See the full report here.

Brian G. Long, director of Supply Management Research in the Seidman College of Business, surveyed local business leaders and his findings are based on data collected during the last two weeks of November. He the slow growth is seasonal and the same is expected for December.

Some of the best news is from the employment index which rose to +15 from +5. The survey's index of business improvement (new orders) remained positive, but edged slightly lower to +7 from +9. The production index remained unchanged at +3, and the index of purchases eased to +5 from +6.

"Although growth in the West Michigan industrial economy has slowed to a crawl, we are still doing better than the overall Michigan economy," said Long. "The cyclical components of the report — auto parts, office furniture, and aerospace — remain stable."  

Long said the U.S. economy continues to be hampered by a strong dollar, falling exports and weak business conditions in the extractive industries, including agriculture. He said strong auto sales and robust commercial and residential construction sectors are among the elements keeping the industrial economy modestly positive.  

He added that, so far, acts of international terrorism have not had a major impact on the U.S. economy and January's numbers will be closely watched. "January is normally a back-to-work month, so as January goes, so 2016 may go as well," he said.

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 can be found in the dropbox link provided above under media note.

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