September 2, 2014
7:40 pm

Michigan Benchmark Declines Again

Job growth in Michigan has essentially stalled out since last August. That's the blunt basis behind Comerica Bank's Michigan Economic Activity Index for February. The index fell 2.1-percentage points to a level of 123.4. February's reading is 51 points, or 71-percent, above the index cyclical low of 72.1. The index averaged 126 for all of 2013, 12 points above the index average for 2012. January's index reading was also revised slightly down to 125.5.

Robert Dye is Chief Economist at Comerica Bank. He says, "Our Michigan index fell again in February, its fourth consecutive decline. Job growth in Michigan has essentially stalled out since last August. Some of that can be blamed on the very bad winter weather conditions that affected the state directly and also hurt national demand for the state's manufactured goods, including cars." He adds, "Increased U.S. auto sales this spring will help the Michigan economy, but the auto sector's potential for job creation is limited as the industry approaches the cyclical peak in auto sales, perhaps by the end of next year."

The Michigan Economic Activity Index consists of seven variables Including: Nonfarm Payrolls, Exports, Sales Tax Revenues, Hotel Occupancy Rates, Continuing Claims for Unemployment Insurance, Building Permits, and Motor Vehicle Production. All data are seasonally adjusted, as necessary, and indexed to a base year of 2008. Nominal values have been converted to constant dollar values. Index levels are expressed in terms of three-month moving averages.

Comerica Bank, with 214 banking centers in Michigan, is a subsidiary of Comerica Incorporated.
Filed Under :
Topics : Business_Finance
Location : Michigan
People : Robert Dye