GVSU economist: Local economy slows

The West Michigan economy has slowed because of the "summer doldrums," according to a Grand Valley State University economist.

Brian G. Long, director of Supply Management Research in the Seidman College of Business, said the slight slow down can be attributed to business owners putting off making major decisions during the summer months.

"I consider August to be a 'non-big-decision' month," said Long. "The routine work gets done, but in a corporate setting, it is hard to get everyone together to make major decisions."

Long surveyed local business leaders and his findings are based on data collected during the last two weeks of August. See the full report here.

The survey's index of business improvement (new orders) remained positive, but backtracked to +6 from +10. In a similar move, the production index tapered to +6, down from +18. The index of purchases fell sharply to -3, down from +14. The employment index remained positive, but fell to +6, from +14. 

"Office furniture survey respondents are less optimistic, and described the current market as somewhat saturated," said Long. "The auto parts producers are beginning to feel the pinch from declining auto sales in certain segments, such as traditional economy cars. For most automotive suppliers, business conditions are still good, but there is a feeling that the last half of the year will be a little less robust."

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.