Comerica Bank’s Michigan Economic Activity Index was flat in November, unchanged at a level of 88. The November 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 continues to be buttressed by recovery in the auto sector. Recent stronger-than-expected U.S. economic data is good news for U.S. auto sales and that is good news for Michigan. Total consumer debt as a percentage of income is very low right now, so there is ample room for many households to take on a new car payment once they feel more secure in their job prospects and more secure about the U.S. economy as a whole,” said Robert Dye, Chief Economist at Comerica Bank. “Regional labor markets in Michigan remain patchy, but overall, unemployment rates are trending down. Soft house prices are still a problem for Michigan, as well as for most other states.”