Comerica Bank’s Michigan Economic Activity Index was down 0.6 percentage points in May to a level of 128.3. May’s reading is 54 points, or 73 percent, above the index cyclical low of 74.0. The index averaged 123.7 points for all of 2015, five and four-fifths points above the index average for 2014. April’s index reading was 128.9.
“Our Michigan Economic Activity Index dipped in May after increasing in April. Only two out of eight index components increased for the month. They were initial claims for unemployment insurance (inverted) and the house price index. Auto production, state exports, housing starts, sales tax and hotel occupancy all eased. The push to the Michigan economy from the post-recession rebound in the auto industry is dissipating. Also, the strong dollar and soft global demand are still headwinds for U.S. exports,” said Robert Dye, Chief Economist at Comerica Bank. “We expect the Bank of Japan to take more steps to weaken the value of the yen relative to the dollar and the euro, which will help the Japanese auto industry globally at the expense of U.S. and European automakers.”
For a PDF version of the Michigan Economic Activity Index click here: Michigan_0716.