Businesses not bullish on 2016 in Michigan

A new survey shows that key businesses in Michigan foresee very slow economic growth in the next six months and continuing into 2017.

Compared to one year ago, economic optimism has plummeted.

The latest quarterly survey of the members of Business Leaders for Michigan (BLM), the state’s "business roundtable," forecasts anemic growth in Michigan and throughout the U.S. economy.

“Michigan’s largest job providers believe that both the Michigan and U.S. economies will experience very little growth over the next six months, but are more optimistic about Michigan’s growth over the next 18 months than they are the rest of the nation,” said Doug Rothwell, BLM president and CEO.

“Our surveys began forecasting the slow-down in growth we are just beginning to experience today.  This survey indicates slow growth will be with us for the next year or so.” 

With the stock market sliding and overseas economies, particularly in China, struggling to hold the line, the only good news for Michigan seems to be continued strength in the auto industry. Survey projections for the national economy are dismal.

The BLM survey found that most business leaders believe the Michigan and U. S. economies will remain the same over the next six months (61% and 80%, respectively) with some believing there will be modest growth (34% and 10%, respectively).  This is slightly better than the quarterly October 2015 survey.

On the positive side, the survey also found about half of the business leaders project their companies will add jobs and make capital investments in Michigan over the next six months.

The results reflect a survey of BLM's 80 members, the state’s largest private sector job providers, representing nearly one-third of the state’s economy. The elite organization is composed of chairpersons, chief executive officers or most-senior executives of Michigan's largest companies and universities. 

For more information on the BLM quarterly Economic Outlook Reports click here.