The West Michigan economy began the new year much as it ended 2025, sluggish, with many local firms still struggling to gain momentum.
A monthly survey of purchasing managers and firms by Grand Valley researcher Brian Long showed that the region’s economy slowed for the third straight month.
“One of the major strains on our economy has been the tariff wars, and we are now approaching the one-year anniversary of the beginning of these wars,” said Long, director of supply management research at GVSU’s Seidman College of Business.
“For some of our survey respondents, they remain a major problem and a significant inhibitor of growth.”
There is one datapoint that could limit the region and the state’s economic recovery — unemployment. Michigan’s unemployment rate is fifth-highest in the nation, and coupled with other factors, could further impede the region’s growth.
“More importantly though, we are getting concerns that the business climate in Michigan has worsened in recent years,” Long said.
Despite those pressures, there are signs of improving conditions, Long said. West Michigan firms are feeling more positive about the short- and long-term economic future as reflected in his business confidence data.
National indicators also point in a similar direction, Long said. National surveys of supply managers and their firms reflected rising expectations, suggesting the economy could strengthen in the months ahead, he said.
“We've had a significant number of statistics coming in that say that the 2026 economy, at least for the short term, will be positive,” Long said.
Here’s a look at the key index results from January’s survey of West Michigan purchasing managers:
- New orders index (business improvement): -11 vs. -11 in December
- Production index (output): -5 vs. -17 in December
- Employment index: -2 vs. -9 in December
- Lead times index: +4 vs. +6 in December
More information about the survey and an archive of past surveys are available on the Seidman College of Business website .
