Wednesday, June 4, 2014
OU Economists Release SE Michigan Economic Outlook Report
Michigan’s economic state has started to see some turn around over the past few years, even while the city of Detroit is still trying to resolve their financial issues, experts are more than optimistic about the economic outlook for Southeastern Michigan. A quarterly report done by OU business school professors Dr. Jonathan Silberman and Dr. Ronald Tracy, show that businesses and consumers are also optimistic about the economic outlook.
Three separate surveys were conducted-consumers, business executives, and experts- regarding the SE Michigan Economic Outlook. Input was provided by 400 consumers, 80 business executives, and 12 experts. Local experts included representatives from UM-Flint, MSU, Wayne State, OU, and the Kellogg Institute.
Business executives have reported significantly increased confidence heading into the second quarter that is well above neutral (50) in sales, profit, hiring, and capital expenditure expectations. Capital Expenditures had seen the highest percentage increase in confidence by 10.1 from last quarter. Sales confidence went up by 5.7, profit by 4.9, and hiring by 4.3 for the second quarter. Consumer confidence is notably more optimistic for 2015.
The second quarter economic outlook includes a survey of experts, business executives, and consumers regarding the $10hr minimum wage debate. While both experts and business executives are in majority against the increase in minimum wage, consumers are in majority for the increase. Unemployment rate is projected to decrease and personal income is predicted to exceed the inflation rate by 1%. The second quarter outlook also projects for the housing market to continue to regain their value by 5%.
“The way to continue to see progress in consumer optimism and economic growth is by continuing to hire more people. By doing this, consumers will be able to tell that the economy is heading back in the right direction” said Professor Tracy regarding what businesses can do to continuously see increased confidence in consumer outlook. Professor Tracy also encourages more business decision makers and consumers to register for the survey for additional insight into SE Michigan’s economy.
To download the report visit: http://www.oakland.edu/business/economic-outlook/reports. You can also subscribe to receive the economic outlook reports on this page.
To register for the survey visit: http://www.oakland.edu/business/economic-outlook.