West Michigan economy continues to expand

The West Michigan economy continues to expand with the number of new orders hitting a 16-month high, according to a Grand Valley State University economist.

Brian G. Long, director of Supply Management Research in the Seidman College of Business, said September is known as a "back-to-work" month, but local numbers are better than expected. Long surveyed local business leaders and his findings are based on data collected during the last two weeks of September. See the full report here.

The survey's index of business improvement (new orders) came in at +23, up significantly from +6 in August. In a similar move, the production index rose to +24, from +6. The index of purchases returned to a positive of +15, up from -3. The employment index remained positive at +9, up from +6. 

"For most of our industrial groups, September was a good month," said Long. "Most of the auto parts suppliers were positive, although a couple signaled a note of caution because of softening auto sales. The office furniture industry continues to show evidence of topping out, but overall business conditions still remain positive."

Long said the upcoming presidential election will not have an impact on the local economy, but most likely affect the stock market. "The possibility of a post-election downtick is real. The business community dislikes uncertainty, so business expansion may be put on hold until the future becomes clear," 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." 

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