Michigan Economy Shifts Into High Gear in January as Economic Activity Index Reaches 6-Year High
Comerica Bank's Michigan Economic Activity Index rose seven points in January, up to a level of 98. The January index level is 38 points, or 63%, above the index cyclical low of 60, and marks the highest index reading since January 2006 (see chart above).
"A rebounding U.S. auto industry drove our Michigan Economic Activity Index sharply higher in January, after stalling in late 2011. Every component of the Michigan index increased in January, a sign that the recovery in Michigan is reaching beyond the revitalized auto industry and into the non-manufacturing sectors of the state economy," said Robert Dye, Chief Economist at Comerica Bank. "Threats to the Michigan economy are still visible in the form of cooler global macroeconomic conditions, higher energy prices and expected cuts in federal defense spending. However, these headwinds are not expected to reverse the state's recent hard-fought gains."