BLM 1Q 2013 Economic Forecast: Michigan will continue to grow faster than U.S. economy

Long-term outlook better than short-term; More hiring planned for 2013

DETROIT, Mich., April 11, 2013 – Business Leaders for Michigan (BLM), the state’s business roundtable, continues to forecast that Michigan’s economy will grow faster than the U.S. economy over the next six to eighteen months.  The forecast is reinforced by 43 percent of BLM members planning to increase hiring in Michigan in just the next six months. “Michigan’s business leaders continue to be more bullish towards the state’s economic outlook than the nation’s again this quarter,” said Doug Rothwell, President & CEO. “While Michigan’s business climate continues to improve, no significant federal policy reforms have been adopted amidst the slowdown in global growth.  The net result is that business leaders are more optimistic about Michigan’s economy short- and long-term and are backing that optimism up with continued hiring.” Highlights of the survey of Business Leaders for Michigan include:

• Almost identical to last quarter’s survey, business leaders (55%) believe Michigan’s economy will grow over the next six months and none believe it will get worse.  Yet 62% of business leaders forecast the American economy will be about same over the next six months.  Only about a 1/3 believe the American economy will grow over the next six months.        

• More Michigan business leaders (76%) believe the state’s economy will grow over the next 18 months.  Yet only 52% of business leaders forecast the American economy will grow in the next 18 months.

• Forty three percent of business leaders project that their companies will add jobs in the next six months in Michigan and about 1/3 believe they will make capital investments in Michigan.

The results reflect a survey of Business Leaders for Michigan’s 80 members, the chairpersons, chief executive officers, or most senior executives of Michigan’s largest companies and universities, who represent nearly one-quarter of the state’s economy. Quarterly Economic Outlook Reports are available at businessleadersformichigan.com/research-and-reports.

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