Data collected by a GVSU researcher indicates the West Michigan economy is improving, even as local firms navigate the ongoing uncertainty of tariffs and global trade tensions.
Brian Long, director of supply chain management at the Seidman College of Business, said his May survey of businesses and purchasing managers shows an uptick in several key metrics.
“Our West Michigan economy is actually doing quite a bit better than the U.S. economy as a whole,” Long said. “Despite all the tariff problems in our current environment, the West Michigan industrial economy appears to be gaining strength.”
Long noted that one of his survey’s best barometers for future business conditions, the new orders index, rose 12 points in May. The survey’s production, or output, index rose four points.
Another encouraging sign, Long said, is a rebound in business confidence. In April, the tariffs created unprecedented confusion, which was reflected in the survey’s short and long-term business confidence data.
“Fortunately, both indexes recovered in May, implying that business planners are now optimistic that the economy will somehow, barring other economic surprises, readjust to the new economic environment, whatever it turns out to be,” Long said.
Still, the uncertainty remains palpable. Long said many survey respondents described a chaotic atmosphere as they continue to deal with the Trump administration’s shifting tariff policies.
“One respondent said that it's a day-by-day, and sometimes hour-by-hour, challenge just to understand how the tariffs will affect their business,” Long said.
“Another one says that it's a very unsettling environment with these on-again, off-again tariffs, but that they are going to do their best to continue pushing back on suppliers that are trying to pass the additional costs along.”
Here’s a look at the key index results from May’s survey of West Michigan businesses:
- New orders index (business improvement): +14 vs. +2 in April
- Production index (output): +14 vs. +10 in April
- Employment index: 0 vs. +2 in April
- Lead times index: +18 vs. +6 in April
More information about the survey and an archive of past surveys are available on the Seidman College of Business website .
