Monday, May 3, 2010
Michigan’s economy should bottom-out during early 2011 – the same conclusion reached in the 4th quarter survey. However, the forecast still calls for Michigan to lag the nation’s economic performance over the next eighteen months and, as a result, only modest hiring gains will be seen.
- Approximately 20% forecast increased hiring in Michigan in the next 6 months. Over seventy percent forecast flat or lower capital investment in Michigan during the same period. The hiring forecast is lower than the last quarter, while the capital investment forecast is a slight improvement.
- 75% believe Michigan’s economy will be the same or deteriorate over the next 6 months, about a 15% improvement over the 4th quarter survey. This is in contrast to nearly 100% thinking the US economy will be the same or get better.
- 55% think Michigan’s economy will get better 18 months from now, an improvement from the 4th quarter survey results. However, most still believe the US economy will be stronger than Michigan’s at this time.
- Most Michigan companies expect to perform better than their sector competitors.