Martin Lavelle of the Federal Reserve Bank of Chicago – Detroit Branch provided an update for the Detroit Real Professionals Mastermind Group reporting that the National economy grew at an annualized pace of 2.6% in the second quarter of 2017. Being the 9th year of growth since the recession, this is the third longest expansion since WWII. While the pace of growth has slowed in recent months, the economy is still healthy despite slower labor force growth and weaker productivity growth overall. Close to 70% of all economic activity is consumer spending.
According to the Fed Index, Michigan has been one of the stronger performing states when it comes to economic growth. Auto sales having record highs in 2015 and 2016 has driven that success. Coupled with the slow but steady rebound in residential housing and increased sales of furniture, appliances, and other big ticket items the numbers have seen a boost. There has been consistent 2 to 2.5% growth in Michigan since the end of the recession. The state has seen a slower growth on the service side but business fixed investment such as structures, equipment, and software has experienced steady growth going back to 2015.