News from Grand Valley State University

GVSU research: West Michigan economy shows modest rebound

West Michigan’s recent slowdown in economic growth appears to be subsiding, according to data collected by a GVSU researcher.

February’s survey of the region’s purchasing managers indicates modest growth, said Brian Long, director of supply management research at GVSU’s Seidman College of Business. 

Long said the improvement may be partly tied to a recent U.S. Supreme Court ruling on tariffs and cost restraints that helped reduce uncertainty among businesses.

“Our February survey statistics came in positive, but the mood of some of our respondents remains cautious, especially among firms that have international exposure, given that the underpinning of the entire world economy seems to be changing on almost a daily basis,” he said. 

That easing of uncertainty likely contributed to the growing optimism among firms, Long said, adding that companies’ short-term projections are beginning to improve compared with the responses he saw in the fourth quarter of 2025.

“Despite all the current economic turmoil, our West Michigan Short Term Business Outlook Index, which asks West Michigan firms about their business perceptions over the next three to six months, ticked up in February and was noticeably higher than the negative reports that we received for several months before Christmas,” Long said.

Long said the region’s automotive sector continues to show resilience, despite projections that the industry could slow in 2026.

“For West Michigan, our largest cyclical industry continues to be automotive and, according to the March 3 report from Automotive News, auto sales continue to be holding up better than expected,” Long said. “We can hope our local auto parts suppliers will continue to pick up some new contracts.”

Here’s a look at the key index results from February’s survey of West Michigan purchasing managers:

  • New orders index (business improvement): +10 vs. -11 in January
  • Production index (output): +8 vs. -5 in January
  • Employment index: +2 vs. -2 in January
  • Lead times index: +9 vs. +4 in January

More information about the survey and an archive of past surveys are available on the Seidman College of Business website .

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