Comerica Bank’s Michigan Economic Activity Index grew in September, up 4.2 percentage points to a level of 129.4. September’s reading is 57 points, or 79 percent, above the index cyclical low of 72.1. The index averaged 114 for all of 2012, 11 points above the index average for 2011. August’s index reading was revised down from 125.4 to 125.2.
“A surge in residential building permits in September lifted our Michigan Index despite a small dip in payroll employment for the month. Also, vehicles assemblies were strong in September. However, recent auto sales data has been soft. The surge in residential building permits is probably not sustainable and will likely be a drag on the Michigan index in coming months,” said Robert Dye, Chief Economist at Comerica Bank. “Auto sales dipped through September and October, down to a 15.2 million unit pace, as fleet sales eased and consumer confidence suffered through the federal government shutdown. Auto sales are expected to show gains in the November data.”
Click here for a PDF version of the Michigan Economic Activity Index: Michigan1113.