West Michigan Economic Growth is Good, but has Moderated
We continue to hear good news about West Michigan and the local economy, but the latest report from Grand Valley State University says our growth has moderated.
Supply Management Research in the Seidman College of Business at Grand Valley State University says the economic growth rate in West Michigan is good but has moderated.
Local business leaders were surveyed and the findings are based on data collected during the last two weeks of June.
"Our survey participants have also taken on a tone of moderation," said Brian G. Long, director of Supply Management Research. "Although certain segments outside of the industrial market, such as new home construction, have picked up, many local industrial firms are at capacity and can only contribute to the economic expansion by adding capacity. The expansions now unfolding by some of our local firms is the reason that the index of employment has remained in double digits for the past 18 months."
Long said the West Michigan economy remains on a solid footing, but the growth rate has tapered off because the summer months are often slower for local industries. Short-term business optimism has faded a little over the past month, but the long-term outlook remained unchanged.
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.