Michigan Economy Grows In May
DETROIT — Comerica Bank’s Michigan Economic Activity Index jumped 1.9 points in May, to a level of 103.9.
The May index reading is 44 points, or 73 percent, above the index cyclical low of 59.9 hit at the bottom of the last recession.
The index has averaged 102 points in the first five months of 2012, 11 points above the index average for all of 2011.
“The economic recovery of Michigan is broadening, pushing our Michigan Economic Activity Index back up in May after a slight dip in April,” said Robert Dye, Chief Economist at Comerica Bank. “The rate of job creation has slowed in recent months as U.S. auto sales have plateaued around a 14 million unit annual sales rate in 2012. But outside of durable goods manufacturing, we are seeing ongoing gains. Housing markets statewide are improving as sales, prices and the rate of new construction all increase.”
The Michigan Economic Activity Index consists of seven variables, as follows: nonfarm payrolls, exports, sales tax revenues, hotel occupancy rates, continuing claims for unemployment insurance, building permits, and motor vehicle production. All data are seasonally adjusted, as necessary, and indexed to a base year of 2004. Nominal values have been converted to constant dollar values. Index levels are expressed in terms of three-month moving averages.
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