Tag Archives: economic indicators

Southeastern Michigan Economy Gaining Strength

by Drawing Detroit | Leave a comment

  • The unemployment rate across the state remained stagnant while the rate in the city of Detroit decreased (monthly);
  • The number of employed Detroit residents increased, (monthly);
  • The Purchasing Manager’s Index for Southeastern Michigan remains strong, especially after increasing 7 points (monthly);
  • The Commodity Price Index remained the same (monthly);
  • The Standard and Poor’s Case-Shiller Home Price Index for the Detroit Metropolitan Statistical Area shows home prices continue to increase monthly and annually.

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According to the most recent data provided by the Michigan Department of Technology, Management and Budget, the unemployment rate for the State of Michigan slightly increased to 4.7 in October of 2016 from 4.6 the previous month. However, unemployment in the City of Detroit decreased to 11.1 in September, from 12.4 the previous month. The September unemployment rate in 2016 was 0.4 points lower than it was in September of 2015.

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In September of 2016 the number of employed Detroit residents rose to 221,238, an increase of 2,314 from August. Between September of 2016 and September of 2015 there was a total increase of 10,012 employed Detroit residents, according to the Michigan Department of Technology, Management and Budget.

While the number of employed Detroit residents increased between August and September the labor force decreased by 1,067. In August the labor force was reported to be 250,047 and in September it was reported to be 248,971.

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The Purchasing Manger’s Index (PMI) is a composite index derived from five indicators of economic activity: new orders, production, employment, supplier deliveries, and inventories. A PMI above 50 indicates the economy is expanding.

According to the most recent data released on Southeast Michigan’s Manager’s Index, the PMI for October 2016 was 67.2, an increase of 7 points from the prior month. The October 2016 PMI was an increase of 8.4 from the previous year.  With this increase, the PMI is considered to be strong, particularly because it has remained above 50 since June of 2014. Much of this growth, according to the Institute of Supply Management of Southeastern Michigan, is due to the resurgence of the auto sector in the region.

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The October 2016 Commodity Price Index decreased 0.2 points from September but increased 3.2 points from the prior year. The three month average for the Commodity Price Index was 48, which the Institute of Supply Management of Southeastern Michigan states is good for short-term profits.

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The above charts show the Standard and Poor’s Case-Shiller Home Price Index for the Detroit Metropolitan Statistical Area. The index includes the price for homes that have sold but does not include the price of new home construction, condos, or homes that have been remodeled.

According to the index, the average price of single-family dwellings sold in Metro Detroit was $109,660 in August 2016. This was an increase from $103,750 from August of 2015 and an increase from $98,720 from August of 2014.

Employment in Detroit Growing, While Unemployment also Increased

by Drawing Detroit | Leave a comment

  • From December 2015 to March 2016, the unemployment rate across the state remained stable while the city of Detroit’s experienced a slight increase (monthly);
  • Employment in the city of Detroit increased by 8,407 from March 2015 to March 2016 (monthly);
  • The Purchasing Manager’s Index for Southeastern Michigan increased from February 2016 to March 2016 (monthly);
  • Commodity Price Index increased from February 2016 to March 2016 for Southeastern Michigan (monthly)
  • Standard and Poor’s Case-Shiller Home Price Index for the Detroit Metropolitan Statistical Area shows home prices are about $6,900 higher than in January of 2015.

Detroit Unemployment

According to the most recent data provided by the Michigan Department of Technology, Management and Budget, the unemployment rate for the State of Michigan increased to 5.1 percent between December of 2015 and March of 2016. During this same period, unemployment in the City of Detroit marginally increased from 10.9 percent in December to 11 percent in March.

Detroit Employed

Since March of 2015 the number of employed Detroit residents in the labor force increased by 8,407, to a total of 217,137 in March of 2016. While the month of March in 2015 had the lowest number of Detroit residents employed in the labor force in the last year, March in 2016 has had the highest number of people employed for 2016.

The conundrum of increasing employment and increasing unemployment likely is a result of more people entering the labor market in the city, creating a situation in which more are employed, but more are also looking for work.

Detroit Manufacturing

The above chart shows the number of people employed in the auto manufacturing industry in the Detroit Metropolitan Statistical Area (MSA) (Detroit-Warren-Livonia) from March 2015 to March 2016. In that time frame the number of people employed in this industry has increased by 300, from 93,100 to 93,400.

PMI

The Purchasing Manger’s Index (PMI) is a composite index derived from five indicators of economic activity: new orders, production, employment, supplier deliveries, and inventories. A PMI above 50 indicates the economy is expanding.

According to the most recent data released on Southeast Michigan’s Manager’s Index, the PMI for March 2016 was 59.1, an increase of 7.1 point from the prior month. This increase is largely representative of the region’s employment, new order and production indexes increasing.

The March PMI was also a decrease of 5.4 from March of 2015.

Commodity Price

The Commodity Price Index, which is a weighted average of selected commodity prices, was recorded at 50 points in March 2016, which was 1.6 points higher than the previous month and exactly the same as what it was in March of 2015.

Detroit Home Price

The above charts show the Standard and Poor’s Case-Shiller Home Price Index for the Detroit Metropolitan Statistical Area. The index includes the price for homes that have sold but does not include the price of new home construction, condos, or homes that have been remodeled.

According to the index, the average price of single-family dwellings sold in Metro Detroit was $103,590 in January 2016. This was an increase of $6,890 from January of 2015 and increase of $9,670 from January of 2014.

Metro-Detroit’s home prices increasing

by drawingdadmin | Leave a comment

  • From May 2015 to June 2015, the unemployment rate across the state and in the city of Detroit’s decreased (monthly);
  • The Purchasing Manager’s Index for Southeast Michigan increased from May 2015 to June 2015 (monthly);
  • Commodity Price Index increased from May 2015 to June 2015 for Southeast Michigan (monthly);
  • Standard and Poor’s Case-Shiller Home Price Index for the Detroit Metropolitan Statistical Area shows home prices are about $3,000 higher than this time last year.

According to the most recent data provided by the Michigan Department of Technology, Management, and Budget, the unemployment rate for the state of Michigan decreased from 5.9 percent in May to 5.8 percent in June. During this same period, unemployment in the city of Detroit also marginally increased from 13 in May percent to 13.1 percent in June. However, it is 3.3 percentage points lower than where it was in June of 2014.

From May to June, the number of people employed in the city of Detroit increased by about 900, leading to a total of 212,107 people employed in June. Since March, the number of people employed in the city has increased by 2,690. In the last year, the month of March had the lowest number of people employed in the city of Detroit.

The above chart shows the number of people employed in the auto manufacturing industry in the Detroit Metropolitan Statistical Area (MSA) (Detroit-Warren-Livonia) from June 2014 to June 2015. From May to June the number of people employed in this industry increased by 1,600, to a total of 108,500. The June number is the highest employment number this industry has had in the last year.

The Purchasing Manger’s Index (PMI) is a composite index derived from five indicators of economic activity: new orders, production, employment, supplier deliveries, and inventories. A PMI above 50 indicates the economy is expanding.

According to the most recent data released on Southeast Michigan’s Purchasing Manager’s Index, the PMI for June 2015 was 66.1, an increase of 0.3 of a point from the prior month. It was also an increase of 19.0 from June of 2014.

The Commodity Price Index, which is a weighted average of selected commodity prices, was recorded at 60.7 points in June 2015, which was 4.4 points higher than the previous month and 4.2 points lower than June 2014.

The above charts show the Standard and Poor’s Case-Shiller Home Price Index for the Detroit Metropolitan Statistical Area. The index includes the price for homes that have sold but does not include the price of new home construction, condos, or homes that have been remodeled.

According to the index, the average price of single-family dwellings sold in Metro Detroit was $101,930 in May 2015. This was an increase of $3,040 since May of 2014 but a decrease of $1,082 from April of 2015.

Michigan and Detroit’s unemployment decreases while home values continue to increase

by drawingdadmin | Leave a comment

  • From February 2015 to March 2015, the unemployment rate across the state and in the City of Detroit’s decreased (monthly);
  • The Purchasing Manager’s Index for Southeast Michigan increased from March 2015 to April 2015 (monthly);
  • Commodity Price Index increased from March 2015 to April 2015 for Southeast Michigan (monthly);
  • Standard and Poor’s Case-Shiller Home Price Index for the Detroit Metropolitan Statistical Area shows home prices have been increasing since September.

According to the most recent data provided by the Michigan Department of Technology, Management, and Budget, the unemployment rate for the state of Michigan decreased from 5.8 percent in February to 5.7 percent in March. During this same period, unemployment in the city of Detroit also decreased from 12.5 in February percent to 11.7 percent in March.

From February to March, the number of people employed in the city of Detroit decreased by 300, leading to a total of 209,417 people employed in March.

The above chart shows the number of people employed in the auto manufacturing industry in the Detroit Metropolitan Statistical Area (MSA) (Detroit-Warren-Livonia) from January 2014 to January 2015. From February to March the number of people employed in this industry declined by 600, to a total of 106,500. This is the first time employment in this industry in the Detroit Metropolitan Statistical Area has dropped since July of 2014. Despite the decline, March had the second highest number of people employed in the auto manufacturing industry in the last year; February had the highest number.

The Purchasing Manger’s Index (PMI) is a composite index derived from five indicators of economic activity: new orders, production, employment, supplier deliveries, and inventories. A PMI above 50 indicates the economy is expanding.

According to the most recent data released on Southeast Michigan’s Purchasing Manager’s Index, the PMI for April 2015 was 66.3, an increase of 1.8 points from the prior month. It was also an increase of 10 from April of 2014.

The Commodity Price Index, which is a weighted average of selected commodity prices, was recorded at 57.9 points in April 2015, which was 7.9 points higher than the previous month and 6.4 points lower than April 2014.

The above charts show the Standard and Poor’s Case-Shiller Home Price Index for the Detroit Metropolitan Statistical Area. The index includes the price for homes that have sold but does not include the price of new home construction, condos, or homes that have been remodeled.

According to the index, the average price of single-family dwellings sold in Metro Detroit was $98,400 in February 2015. This was an increase of approximately $5,000 from the average price in January 2014. Since February of 2014, prices have increased by $3,590.