Comerica Bank’s Michigan Economic Activity Index increased 1.9 percentage points in June to a level of 129.8. June’s reading is 56 points, or 75 percent, above the index cyclical low of 74.1. The index averaged 123.6 points for all of 2015, five and four-fifths points above the index average for 2014. May’s index reading was 127.9.
“Our Michigan Economic Activity Index climbed in June after dipping in May. The index is on an upward trajectory so far in 2016, but it has been somewhat inconsistent, not showing back-to-back gains since mid-year 2015. Six subcomponents were positive in June, including state exports, initial claims for unemployment insurance, housing starts, auto production, sales tax revenues and hotel occupancy. House prices eased while nonfarm employment was unchanged,” said Robert Dye, Chief Economist at Comerica Bank. “U.S. auto sales surged in July to a 17.9 million unit sales rate, but we expect sales to gradually ease from that strong pace, allowing U.S. auto production to ease as well.”
For a PDF version of the Michigan Economic Activity Index click here: Michigan_0816.