Despite the fluctuating federal tariff policies and rising costs, the West Michigan economy remains resilient, according to data collected by a GVSU researcher.
Brian Long, director of supply chain management research at GVSU’s Seidman College of Business, said the region’s purchasing managers reported modest growth for the second consecutive month.
“Our monthly survey of the West Michigan industrial economy has posted a second positive month of growth,” Long said. “Of course, we hope this trend will continue, but the business environment is in a state of flux.”
Long’s March report showed encouraging signs for the regional economy.
His new orders index, a measurement of a firm’s business improvement, rose sharply to a four-year high. His production metric, which reflects a firm’s output, also increased significantly.
Long said the survey mirrors national and international data that showed modest growth in March. However, rising costs, uncertainty surrounding tariffs and conflict in Iran are prompting caution among firms.
“Because of this uncertain tariff situation and the war in Iran, inflation is now running rapidly in the industrial market,” Long said. “About 40% of our respondents are reporting price increases out of control.
“For the consumer, the good news is that industrial inflation does not automatically roll over into consumer inflation like it did years ago.”
Here’s a look at the key index results from March’s survey of West Michigan purchasing managers:
- New orders index (business improvement): +26 vs. +10 in February
- Production index (output): +16 vs. +8 in February
- Employment index: 0 vs. +2 in February
- Lead times index: +7 vs. +9 in February
More information about the survey and an archive of past surveys are available on the Seidman College of Business website .
