The newest state GDP numbers, launched on the finish of March, present Michigan had been cooling within the fourth quarter:

For all of 2022, Michigan recorded a 1.8 p.c improve in GDP, sufficient for it to rank proper within the center: twenty fifth amongst all states. However that’s a decline from its rank of thirteenth a 12 months earlier.

The 5 Nice Lakes states common 1.9 p.c development, led by Illinois at 2.3 p.c. Indiana additionally was forward of Michigan at 1.9 p.c development, whereas Ohio (1.5 p.c) and Wisconsin (1.7 p.c lagged). 

Within the final three months of the 12 months, simply 5 states posted slower or unfavorable development, and one (Maryland) tied Michigan at a 0.3 p.c development charge.

Private earnings knowledge, launched on the similar time, exhibits Michigan’s elevated 0.4 p.c in 2022, a charge that places the state forward of solely Hawaii and Louisiana, and tied with California. A 12 months earlier, it elevated 5.2 p.c, partially due to earnings from sources apart from wages, similar to unemployment advantages.

Private earnings impacts shopper spending, with larger private earnings indicating a stronger economic system. 

In the meantime, Michigan’s GDP for 2022 totaled $490 billion, the 14th largest within the U.S. — a rank unchanged from 2021.


About 40 p.c of Michigan’s main enterprise executives mentioned they anticipate inflation to both improve or proceed on the present stage, in response to a survey launched Thursday by the Enterprise Leaders for Michigan statewide enterprise roundtable. 

Simply 6 p.c of these leaders say they anticipate Michigan’s financial outlook to enhance within the subsequent quarter, down from 8 p.c at year-end 2022. Forty-four p.c anticipate the state to worsen (which is an 11 p.c decline from year-end 2022). 

And most executives who participated within the survey anticipate their employment and capital funding inside Michigan to stay the identical over the following 12 months. 

Manufacturing is anticipated to remain robust all year long, significantly Michigan’s automotive sector. Half shortages curtailed potential gross sales over the previous three years, leaving a “backlog of demand (that) could show to be a silver lining because the economic system cools,” College of Michigan economists mentioned in a February financial forecast.

U-M’s forecast projected U.S. auto gross sales to develop from an estimated 13.9 million models in 2022 to fifteen.1 million models in 2023. Each Ford and Common Motors posted gross sales beneficial properties within the final quarter, even because the automakers reconfigure their manufacturing and trim prices and staffing to organize for extra electrical autos. 

Nonetheless, customers are spending much less on manufactured items and extra on companies, mentioned Yasmeen Jasey, Michigan market government for Residents Monetary Group, 

In Michigan, which means a rebound for journey, eating places and well being care, she mentioned. 

Retail misplaced floor over the course of the 12 months in Michigan, with its share of the GDP sliding over the earlier 12 months by 0.25 p.c. Nonetheless, it was among the many largest gainers within the fourth quarter. 

Two-thirds of Michigan’s retailers anticipate gross sales to extend by the tip of the second quarter this 12 months, in response to the newest survey by the Michigan Retailers Affiliation. 

March gross sales had been slower than anticipated, spokesperson Andrea Bitely instructed Bridge, partially attributable to climate. Spring and early summer time are anticipated to revive gross sales, she mentioned. And, in contrast to the previous couple of years, most retailers and wholesalers can anticipate to be absolutely stocked.

“We’re lastly getting provide chains again in a workable format in order that they’ve full cabinets and the flexibility to promote and generate income,” Bitely mentioned. 

That provides the sector hope for extra constant gross sales, she mentioned. 

Building and the monetary sectors should still battle to regain misplaced floor after the rise in rates of interest cooled dwelling shopping for and a few lending. Michigan constructing permits for all residential types, together with residences, had been 26 p.c decrease in February than a 12 months earlier. And within the first two months of the 12 months, residential gross sales had been 19 p.c decrease than throughout the identical interval in 2022.