The greater Grand Rapids industrial economy is still good but less
robust, according to the results of a monthly survey compiled by Brian
G. Long, director of Supply Management Research in the Seidman College
of Business at Grand Valley State University.
The survey results are based on data collected in the last two
weeks of October. The survey’s index of business improvement, called
new orders, remained positive but eased to +15 from +33. In a similar
move, the production index eased to +19 from +36. The index of
purchases backtracked to +9 from +28. The employment index moderated
to +21, down from +44.
Long said this month’s report shows that the Greater Grand
Rapids economy is still growing, but the pace has slowed from the
previous month. “So far, it looks like this trend may continue for a
few more months. But growth is still growth, even if it is a little
slower,” Long said.
Long said the office furniture business turned in a mixed
performance for the month. “Although there are no obvious new problems
with the market for office furniture, the industry is blessed with the
revival of the industrial market, but cursed by the prevailing slow
rate of overall economic growth,” he said. Long noted that automotive
parts suppliers are still doing well.
Other economic news included the decline of Michigan’s
seasonally adjusted unemployment rate to 13.0 from 13.1. Long said any
decline in the unemployment rate is good news, but this month’s
reduction by only .1 percent underscores the slow pace of Michigan’s
recovery from the recession.
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
purchasing managers 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
and details of the methodology used to compile it are available at
www.gvsu.edu/scblogistics.
Call Dottie Barnes at (616) 331-2221 to arrange interviews with Long.
DOWNLOADABLE AUDIO
* Brian Long says small growth is still growth and that is significant (audio).
* Long says the office furniture industry showed a mixed performance (audio).
* Long says the current recovery is much slower than past recessions (audio).
* Long says Michigan lags the nation in recovering because of the automotive industry (audio).
