Comerica Bank’s Michigan Economic Activity Index grew in October, up 1.0 percentage point to a level of 128.4. October’s reading is 54 points, or 73 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. September’s index reading was 127.4.
“The Comerica Bank Michigan Economic Activity Index increased in October, breaking a three-month slide that started last July. Gains were visible across most indicators, with seven out of eight index components either improving or staying even in October. The gainers were nonfarm payrolls, state exports, unemployment insurance claims (inverted), housing starts, auto production and hotel occupancy. Home prices were unchanged, as they were in August and September. Only state sales tax revenue declined in October. Ford Motor Company announced that they are canceling plans to build a new plant in Mexico; instead, they will invest $700 million in the Flat Rock assembly plant,” said Robert Dye, Chief Economist at Comerica Bank. “Ford’s decision will add support to Michigan’s economy and increase their employment base in Michigan by 700 workers.”
For a PDF version of the Michigan Economic Activity Index click here: Michigan_1216.