Comerica Bank’s Michigan Economic Activity Index was flat in October, at a level of 88. The October index level is 17 points, or 24 percent, above the index cyclical low of 71. Year-to-date the index has averaged 87 points, two points above the average for all of 2010.
“The Michigan economy is showing more signs of stability, holding on to gains from rebounding auto production,” said Robert Dye, Chief Economist at Comerica Bank. “The rate of job growth for the state is about on par with the national average and the unemployment rate is set to resume trending downward. More stability in labor markets will in turn help to stabilize the state’s housing markets. The Michigan economy is still somewhat patchy with regional unemployment rates elevated and house prices soft. National economic data through the fourth quarter of 2011 has been better than expected and this is supportive of ongoing gains to auto sales…good news for the Michigan economy.”