GVSU economist: Back to double-digit growth

The economic rally for industrial markets in West Michigan continues, according to 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 below are based on data collected during the last two weeks of February. See the full report here.

The survey's index of business improvement (new orders) bounced to +25, up significantly from +8. The production index rose to +17 from +8. The index of purchases jumped to +19 from +6. The employment index rose to +12, up from +6. 

"The auto parts suppliers continue to raise concern over the recent softening in auto sales but remain positive about the 2017 outlook," said Long. "For the office furniture industry, a few of the firms are continuing to set sales records, although many signs still point toward sales topping out. The capital equipment rally which started in January is still moving forward and the performance for the industrial distributors continues to be positive for some firms, but others are seasonally stagnant."

Long said most of the state, local and national statistics are continuing to improve.  

"Even the world economy continues to show modest improvement," he said. "The term 'Trump Rally' has been applied to the stock market, which has risen about 17 percent since Election Day. Overall, there is now a new wave of optimism, partially driven by expectations for decreased regulation and lower taxes."  

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.