GVSU data suggests West Michigan economy on the upswing

Research reveals a positive outlook for the region as 2025 approaches (Courtesy, pxhere.com)

By Brian Vernellis

GVSU Communications

A monthly survey by Grand Valley State University (GVSU) of West Michigan businesses and purchasing managers highlights improving economic conditions after a four-month slump during the summer.

Research conducted by Brian Long, director of supply management research at GVSU’s Seidman College of Business, reveals a positive outlook for the region as 2025 approaches.

“Our local survey has turned back to positive and so have the surveys at the national levels,” Long said. “If this current pattern continues, 2025 should, at least, begin with a strong economy.”

Resilience

Long said two particular data points in his survey showed resilience in November. Both the new orders index, Long’s measurement of business improvement, and the production index, his measurement of output, rose considerably.

“Everyone’s happy that this contentious election is finally over, but almost no one expected this current level of euphoria,” Long said. “The stock market has boomed, the industrial market indices at the national and international level have significantly improved, small business confidence is up and consumer confidence has picked up as well. This is more than what we expected.”

Concerns about a potential recession have dimmed (Courtesy, pxhere.com)

Notable growth

November’s data reflected notable growth compared to the survey’s negative results during the summer, which had raised concerns about a potential recession.

“The Federal Reserve has been raising interest rates to cool the economy and hopefully cure inflation, but at the same time, not generate a recession,” Long said. “They have only accomplished this once in the last 75 years. I don’t see any recession on the horizon right now, so they may have been successful this time for the first time in what amounts to over 35 years.”