LANSING – Economic activity was essentially flat in July, but Michigan saw increased automobile production that month, which has helped ease supply-chain constraints, so says Comerica Bank’s Michigan Economic Activity Index.
“Sales for the three Detroit automakers held up in August and September despite the severe drop in consumer confidence that we saw at the end of the summer. As long as auto sales remain supportive of the rebound in production, the Michigan manufacturing sector will hold on to recent gains. Lower gasoline prices and ample pent-up demand are also positives for the auto sector,” said Comerica Chief Economist Robert Dye.
But conditions are “challenging” for sectors outside of durable goods manufacturing.
“Consumer spending is fundamentally constrained by a weak housing market and a downshift in global macroeconomic expectations is keeping hiring tentative,” Dye said.
The July Index was at 86, which was virtually unchanged. While better than recent years, the Index is still below levels seen in 2008 or prior.
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