GRAND RAPIDS – Despite signs that several local industries are topping out, the index for employment and new orders in West Michigan are at a two-year high, 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 April.
The survey’s index of business improvement (new orders) bounced to +35, up from +21. The production index remained very strong, but eased to +29 from +31. The index of purchases came in virtually unchanged at +26, and the employment index jumped to +26 from +21.
“Most auto parts suppliers are still positive, although several business leaders have voiced concerns about softening auto sales,” said Long. “The office furniture business is still experiencing a spring rally, and smaller firms are outpacing their larger counterparts. Just like many months in the past, the performance for the industrial distributors continues to be mixed.”
Long said there are some signs the “Trump rally” may be running out of steam. The West Michigan short-term business outlook, which asks leaders their perception for the next three-to-six months, remained positive but backtracked to +32 from +37. Looking out three-to-five years, the long-term business outlook also remained positive but edged down to a near-record low of +35 from +47.
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.
