The greater Grand Rapids industrial economy continues to grow
slowly, 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 May. The survey’s index of business improvement, called new
orders, moderated to +19, down from +29. In a similar move, the
production index eased to +26 from +35. The index of purchases eased
considerably to +25 from +51. The employment index remained fairly
strong at +43 down modestly from +46.
“Economics 101 tells us that employment is almost always a
laggard,” said Long. “Given that many other indicators have pointed to
slower growth for the second half of 2011, this month’s numbers are
not a total surprise.”
Long said some projections now say the housing downturn may have
further to go, and it could take eight to 10 years for a full
recovery. He said the office furniture sector is still positive and
most auto parts suppliers remain stable. Overall, he said the
performance for the industrial distributors came in fairly positive
for the month.
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, Grand Valley News and Information Services,
at (616) 331-2221 to arrange interviews with Long.
DOWNLOADABLE AUDIO
* Long said looking ahead, he doesn't expect to see the level of expansion experienced in the first part of the year (audio).
* Long said the earthquake in Japan has finally caught up with auto supply dealers (audio).
* Long said restrictive mortgage rates are affecting the economy (audio).
* Long said it's been five years since the housing market topped out (audio).
* Long said current gas prices will affect the overall economy (audio).
