DETROIT – Comerica
Bank’s Michigan Economic Activity Index grew in June, increasing 1.9 percentage
points or 71 percent, above the index cyclical low of 74.
The index,
now at 126.8, averaged 117.4 points for all of 2014, three and one-third points
above the index average for 2013. May’s index reading was 124.9.
“Our
Michigan Economic Activity Index for June increased for the third consecutive
month, propelled by the state’s resurgent auto industry, which is a key factor
in the state’s steady job growth. The uptick in U.S. auto sales through
mid-year has boosted auto production in Michigan. Nonmanufacturing job growth
has also been an important part of Michigan’s economic revival. Property
markets continue to firm up and residential construction activity is
increasing,” said Robert Dye, Chief Economist at Comerica Bank. “The challenge
ahead for Michigan will be to retain momentum in the nonmanufacturing economy,
even as auto sales level out and eventually recede from current highs.”
The Michigan
Economic Activity Index consists of eight variables, as follows: nonfarm
payrolls, exports, hotel occupancy rates, continuing claims for unemployment
insurance, housing starts, sales tax revenues, home prices, and auto
production. All data are seasonally adjusted, and indexed to a base year of
2008. Nominal values have been converted to constant dollar values. Index
levels are expressed in terms of three-month moving averages.
