Current business trends: Growth returns

The West Michigan economy is again showing the same slow growth that has been reported for the past seven years, according to a report by a Grand Valley State University economist. 

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 February. 

"Although our statistics for January were incrementally positive, the data and comments collected in the last two weeks of February reflect the back-to-work tone of a post-holiday season," Long said.

The employment index jumped to +17, up from +8. The survey's index of business improvement (new orders) rose to +14, up from +4. The production index remained unchanged at +12, while the index of purchases remained below par at -3, slightly lower than the -1 reported last month. 

"Just as it has for the past six months, the West Michigan economy continues to outpace the national economy as well as the overall Michigan economy," said Long. "Although some firms are continuing to feel the impact of global economic stagnation, many of our survey participants remain fairly optimistic about 2016 — at least for the first two quarters." 

Long said some office furniture firms are still waiting for new business to resume the upward trend, however, the market may have already hit its peak. He said automotive parts producers turned in a mixed performance for February, retail auto sales are still strong and several local fabricators are still at full capacity. 

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.