Comerica Bank’s Michigan Economic Activity Index improved in November, up 1.3 percentage points to a level of 129.7. November’s reading is 56 points, or 75 percent, above the index cyclical low of 74.1. The index averaged 123.6 points for all of 2015, five and four-fifths points above the index average for 2014. October’s index reading was 128.4.
“The Comerica Bank Michigan Economic Activity Index increased for the second consecutive month in November. The state economy is showing broad-based gains, with six of the eight index components up for the month. Nonfarm employment, unemployment insurance claims (inverted), housing starts, home prices, sales tax revenues and hotel occupancy were all up in November. State exports eased, as did auto production. Year-over-year job growth for Michigan remains above the U.S. average, dipping slightly to 2.1 percent in November. The state’s unemployment rate declined to about even with the national average by late 2015 and remains close. Many industries report very tight labor market conditions and this will keep upward pressure on wages through 2017,” said Robert Dye, Chief Economist at Comerica Bank. “The Trump Administration is focused on keeping auto sector jobs in Michigan and this will help to extend the current positive business climate for the state.”
For a PDF version of the Michigan Economic Activity Index click here: Michigan_Index_0117.