Current business trends are flat
Sep 6, 2012
The greater Grand Rapids industrial economy is flat, 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 during the last
two weeks of August. The survey’s index of business improvement,
called new orders, returned to +0, up from -6. The production index
flipped back to positive at +5, up from -5. The employment index
remained unchanged at +18.
“Our automotive parts suppliers are still positive, but none are
showing the rapid expansion we have had for most of the last three
years,” said Long. “Despite the strong sales figures for autos, there
are still considerable questions about the automotive production
schedules for the rest of the year.
“Most major firms in the office furniture business continue to be
stable. Not up, not down, but stable. It‘s possible the office
furniture business will finish the year a little stronger than the
earlier industry projections. The industrial distributors are also
stable for the month. The capital equipment firms are more widely
mixed, with some still up, but others fading.”
Long said some of the best news for the month came from the
housing sector. “The closely watched Case-Shiller price indices were
all up,” said Long. “The 10 Cities Composite, 20 Cities Composite, and
the all-important U.S. National Composite indices all turned positive
for the first time in more than two years. For Michigan, year-to-date
sales are up 10 percent, and prices are up nearly 5 percent.”
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
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.”
For more information, contact Brian Long at (269) 323-2359.
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