The West Michigan economy in October entered into what is being described as a slow, shallow growth period. What’s causing the flattening?
The October economic slowdown was triggered by a slowdown in auto sales and that’s impacting local parts suppliers.
“Their orders are already off if they are supporting lines of cars that aren’t selling. The cars that aren’t selling right now are the small cars, the fuel efficient cars.” Brian G. Long is director of Supply Management Research in the Seidman College of Business at Grand Valley State University. His recent economic survey show the area’s office furniture industry remains positive but that there are signs it may be “topping out.”
For now, Long says expect the pattern of slow growth to continue along with improving employment conditions and wage increases.
Long points out “Ottawa County’s unemployment rate of 2.7 percent continues to be the lowest in the state, while Allegan and Kent counties tied for second place at 2.9 percent.”
As for the impacts of last week’s Presidential Election, how might it affect the local economy? “The big factor, of course, relates to international trade and whether there’s the possibility of us getting into some trade disputes. That would obviously have a major impact on some of our local industrial firms.”
Long explains the election’s psychological impact on Wall Street may influence hiring and investment down the road.
Patrick Center, WGVU News.