Comerica Bank's Michigan Economic Activity Index rose one point in May, to a level of 83. May's reading is up 12 points from the same period a year ago, marking the fourth consecutive double-digit increase in the Index, on a 12-month basis. Year-to-date, the Index is up nine points, or 12%, from the average for all of 2009.
"Our Index has stalled somewhat in the second quarter, after climbing impressively in the first quarter," said Dana Johnson, Chief Economist at Comerica Bank. "A notable increase in steel production in May helped offset declines in gas consumption, motor vehicle sales, and building permits. The recovery in Michigan, thus far driven largely by increased consumer spending and production, has struggled in the second quarter of the year, with consistent gains in the housing and employment sectors unsustained as of yet. Over the course of the year, however, broad-based gains in the national economy should result in sustained moderate job growth in Michigan, resulting in an increasingly widespread recovery."
The Michigan Economic Activity Index equally weights nine, seasonally-adjusted coincident indicators of real economic activity. These indicators reflect activity in the construction, manufacturing and service sectors as well as job growth and consumer outlays. A complete Index history is available upon request.
"Our Index has stalled somewhat in the second quarter, after climbing impressively in the first quarter," said Dana Johnson, Chief Economist at Comerica Bank. "A notable increase in steel production in May helped offset declines in gas consumption, motor vehicle sales, and building permits. The recovery in Michigan, thus far driven largely by increased consumer spending and production, has struggled in the second quarter of the year, with consistent gains in the housing and employment sectors unsustained as of yet. Over the course of the year, however, broad-based gains in the national economy should result in sustained moderate job growth in Michigan, resulting in an increasingly widespread recovery."
The Michigan Economic Activity Index equally weights nine, seasonally-adjusted coincident indicators of real economic activity. These indicators reflect activity in the construction, manufacturing and service sectors as well as job growth and consumer outlays. A complete Index history is available upon request.
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