Economic Indicators

Consumer Sentiment Up for the Fifth Consecutive Month

According to the University of Michigan Surveys of Consumers, consumer sentiment registered at 74.0 in December 2024. According to Surveys of Consumers director, Joanne Hsu, buying conditions exhibited a particularly strong 32% improvement, primarily due to a surge in consumers expecting future price increases for large purchases. The expectations index continued the post-election re-calibration that began last month, climbing for Republicans and declining for Democrats in December. Importantly, for Independents, expectations were essentially unchanged from the past month or so for personal finances, short-run business conditions, and long-run business conditions. Broadly speaking, consumers believe that the economy has improved considerably as inflation has slowed, but they do not feel that they are thriving; sentiment is currently about midway between the all-time low reached in June 2022 and pre-pandemic readings. Read the full report. 

 The Consumer Sentiment Index is a statistical measurement that provides an economic indicator of consumers’ opinion and optimism of the state of the economy. 

Michigan Unemployment Rate Rose for the Second Consecutive Month

Michigan and the Detroit Region’s November 2024 monthly unemployment rate increased to 4.8%, falling 0.6 percentage points below the national rate of 4.2%. 

U.S. Economy Grew at a 3.1% Rate in Q3 2024

Real gross domestic product (GDP) increased at an annual rate of 3.1 percent in the third quarter of 2024, according to the “third” estimate. In the second quarter, real GDP increased 3.0 percent. The increase in the third quarter primarily reflected increases in consumer spending, exports, business investment, and federal government spending. Imports, which are a subtraction in the calculation of GDP, increased. Read the full BEA report.

The GDP is measured as the total market value of the goods and services produced within a specific geography during a given time period. Gross domestic product is a key indicator of the general health of the economy and its performance, with increases indicative of economic growth.

Progress on Inflation Remains Stubborn in November

In November, the Consumer Price Index for All Urban Consumers rose 0.3 percent, seasonally adjusted, and rose 2.7 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy increased 0.3 percent in November (SA); up 3.3 percent over the year (NSA). Read the full report.

Consumer Sentiment Up for the Fifth Consecutive Month

According to the University of Michigan Surveys of Consumers, consumer sentiment registered at 74.0 in December 2024. According to Surveys of Consumers director, Joanne Hsu, buying conditions exhibited a particularly strong 32% improvement, primarily due to a surge in consumers expecting future price increases for large purchases. The expectations index continued the post-election re-calibration that began last month, climbing for Republicans and declining for Democrats in December. Importantly, for Independents, expectations were essentially unchanged from the past month or so for personal finances, short-run business conditions, and long-run business conditions. Broadly speaking, consumers believe that the economy has improved considerably as inflation has slowed, but they do not feel that they are thriving; sentiment is currently about midway between the all-time low reached in June 2022 and pre-pandemic readings. Read the full report. 

 The Consumer Sentiment Index is a statistical measurement that provides an economic indicator of consumers’ opinion and optimism of the state of the economy. 

Michigan’s Labor Force Participation Unchanged In November 

The November statewide labor force participation rate remained steady at 62.2%, 0.3 percentage points below the national rate. The November statewide labor force participation rate decreased by one-tenth of a percentage point over the month to 59.2%.

Michigan’s New Business Applications Continues to Slow in 2024

New Business Applications are down 19% from the previous month and applications decreased over 26% year-over-year, amounting to 8,708 in November 2024. The tightening of the credit market is most likely attributing to the continued slowing of applications in 2024.

PMI® Contracted For The Eighth Consecutive Month in November

The Manufacturing PMI® registered at 48.4% in November, 1.9 percentage point higher compared to the 46.5 percent reported in October according to the Institute for Supply Management® (ISM®).  According to Timothy Fiore, Chair of the Institute for Supply Management Manufacturing®, after breaking a 16-month streak of contraction by expanding in March, the manufacturing sector has contracted the last eight months.

ISM® states a reading above 50% shows that the manufacturing economy is generally expanding; below 50% indicates that it is generally contracting. The index is based on a monthly survey of supply chain managers and measures general direction of economic trends in manufacturing and other sectors.

Passenger Traffic Increases Year-over-Year

Detroit Metropolitan Airport experienced a 1.5% increase in total passengers in October 2024 totaling 2.8 million passengers compared to October 2023.