Call it uncertainty. Call it fading optimism. Call it whatever you like, Michigan’s key business leaders at the highest levels are trimming back robust predictions of recent years and see more clouds in the business forecast going forward.
The men and women who comprise the membership of the Business Leaders for Michigan are routinely surveyed regarding personal forecasts for their own companies as well as for the state and national economy and the most recent results have taken the shine off of solid gains over the past decade.
According to Business Leaders for Michigan President & CEO Doug Rothwell, the state’s top business leaders are predicting slower growth during the next six to 18 months. That’s the bottom line from the latest quarterly survey of his organization’s members.
While 95-percent of survey respondents expect their companies’ capital investment in Michigan to increase or at least remain the same during the next six months, a larger proportion (54-percent) expect it to remain the same than in previous quarters. Nearly 40-percent of respondents expect to add jobs, while more than half (56-percent) expect employment levels within their companies to remain about the same.
Rothwell is concerned. He says, “After nearly a decade of very strong growth, we’re starting to see some uncertainty reflected in these survey results.” He adds, “Much of it is likely connected to the November elections and what our nation’s and state’s future economic policies will look like.” He warns, however, now is not the time to take our foot off of the gas, suggesting, “Now, more than ever, it is important for our state to remain cohesive and united behind a clear plan for keeping Michigan competitive.”
Highlights of the survey of Business Leaders for Michigan include:
- Next six months: The percent of business leaders (31-percent) having a positive view of U.S. economic growth over the next six months has decreased significantly since the second quarter level of 79-percent. Similarly, just 22-percent of respondents believe Michigan’s economic growth will improve during the same time period, down from 57-percent during the second quarter.
- Next 18 months: Optimism about both the Michigan and U.S. economies has declined since the second quarter. Twenty-two percent of the survey respondents believe the U.S. economy will improve over the next 18 months, another 22-percent believe the economy will stay about the same and more than half (56-percent) expect a decline. With respect to Michigan, less than ten percent of business leaders (9-percent) expect improvement, 53-percent anticipate things will stay about the same, and 37-percent expect a decline.
You can track the numbers yourself by checking Business Leaders for Michigan’s regular Quarterly Economic Outlook Reports which are available online at the link below:
https://businessleadersformichigan.com/category/data/surveys/
Business Leaders for Michigan, the state’s business roundtable, is dedicated to making Michigan a “Top Ten” state for jobs, personal income and a healthy economy. The organization is composed exclusively of the chairpersons, chief executive officers, or most senior executives of Michigan’s largest companies and universities. Members drive nearly one-third of the state’s economy, provide 390,000 direct jobs in Michigan, generate over $1 trillion in annual revenue and serve nearly half of all Michigan public university students. Find out more at the link below:
