DETROIT – Nearly half of Michigan leaders expect state economic growth to decrease or worsen over the next year, according to a quarterly survey of business leaders, a sharp increase over the previous survey.
Of those surveyed during the third quarter of the year ending September 30, about 48.8 percent said the state economy would remain about the same over the next six to 12 month and 46.5 percent said the economy is likely to take a turn for the worse. The remaining 4.6 percent said the economy is likely to improve over that period.
This was compared to 61.5 percent of those polled during the second quarter expecting the economy to remain the same over the next six to 12 months and only 33.3 percent expecting the economy to worsen, with about 5.1 percent expecting an improvement in the economy.
A similar shift among the opinions of Michigan business leaders was recorded during the third quarter for the national economy over the next six to 12 months as compared to during the second quarter.
For the national economy, 58.1 percent of those polled believed the national economy would remain about the same over the coming year, while 37.2 percent expected a decline and 4.6 percent expecting an improvement in the economy. This was compared to 64.1 percent during the second quarter expecting the economy to remain about the same, 25.6 percent expecting a downturn and 10.2 percent expecting an improved national economy.
As to capital investment over the next six to 12 months, 60.4 percent expected to make about the same level of investments, 27.9 percent expected to increase theirs and 11.6 percent expected lower investment levels.
For employment, 60.4 expected their employment levels to remain about the same, 25.5 percent expected more hiring and 13.9 percent expected there to be less employment during the next year.
“Michigan business leaders are a little less enthusiastic about their own future investment during the next six to 12 months. While most are not yet anticipating any reduction in their employment levels, fewer job providers are coming down on the side of growth,” BLM president Doug Rothwell said in a statement. “Is it time to worry? Not yet, but we need to have some critical conversations about what lies ahead.”
This story was published by Gongwer News Service.