Local economic upturn continues

The West Michigan economy is again gaining strength, after the industrial economy softened at the end of 2015, 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 March. 

View the full report here.

The survey's index of business improvement (new orders) rose to +15, up from +14. The production index also edged higher to +16, up from +12. The index of purchases turned positive to +3, up from -3. The employment index fell slightly to +14, from +17. 

Long said the February unemployment rate in Kent County was at 3.2 percent, Ottawa County was at 3.1 percent, and Kalamazoo County was at 3.6 percent. "The recovery is finally taking hold and the employment picture is the best it has been since the recovery began seven years ago," said Long. "We should see at least some additional improvement over the next few months." 

Long said strong auto sales are still keeping local auto parts suppliers busy, the office furniture business remains stable and some of the specialty firms are reporting an unexpected upturn. He said industrial distributors were generally positive, however, capital equipment firms reported widely mixed results.  

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.

DOWNLOADABLE AUDIO

Brian Long said some numbers that were worrisome in December have reversed themselves (audio).

Long said local employment numbers are now indicative of full employment (audio).

Long said growth for the Big Three automakers appears to be topping out, but local auto suppliers show strong numbers (audio).

Long said the world economy is looking better, especially in China (audio).