Analysts: Michigan Recession Is Over

ANN ARBOR (WWJ) – According to new government data, the recession in Michigan ended last year.

University of Michigan Economist Donald Grimes says even though Michigan’s economy saw its best growth in eight years, consumers are still apprehensive.

“Consumer confidence is heavily influenced, of course, by the price of people’s biggest asset, which is their house. And also the fact that, for a lot of people, there is not this decline in the unemployment rate. The benefits are much more narrowly focused,” Grimes told WWJ Newsradio 950.

“The vast majority of people who were unemployed did not find a job. So, to them, it’s not getting better. Of course, housing prices are still going down, so the wealth, in some sense, is still deteriorating,” he said.

Grimes said, as in past recessions, the auto industry is leading the state out of the downturn. But, he said there’s an important difference this time.

“I think the one difference is when we came out of all of those other recessions you had so many auto jobs that you recovered all of the ones you lost. There is no hope that we’ll recover anywhere near all of the jobs we lost in the auto industry. We’ll recover a few of them,” said Grimes.

General Motors’ stock is trading almost 30 percent below its high set in January.

Grimes said it’s vital that other industries step up to the plate to keep the state’s economy headed in the right direction.

  • BigJ

    Yea, sure it’s over. You jerks! Let’s just say that to calm people down. The reason it is over is because there is no money left.

    It’s time for a revolution!!!!!!1

  • Jill Wrenbeck

    Anyone wanting to sign a petition to recall Governor Snyder will be able to do so in South Lyon on the corner of 9 Mile and Pontiac Trail between 2:30 and 4:30 today.

  • Ed Downs

    One reason why Michigan is ranked the lowest state (50th) for investing is because of the reports like this. Example: from 2000 to now: US 1.1 million fewer jobs, with 28 million more people; Michigan 0.75 million fewer jobs, with 60,000 fewer people. 25% of all the jobs in the US created this year are McDonalds. —Yes, the numbers include part time, contract workers and subs.

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