Southeastern Michigan 3rd Quarter Economic Outlook Released

Southeastern Michigan 3rd Quarter Economic Outlook Released

Oakland University professors Dr. Jonathan Silberman and Dr. Ronald Tracy have released their Southeastern Michigan Economic Outlook report for July 2014. Despite varying opinions between consumers, business executives, and local economic experts, both professors believe the Michigan economy is on a path of improvement.

Consumer outlook continued the trend of the past four quarters of data collection and analysis by showing neutrality in sentiment regarding current financial condition, buying major household items, and national economy. The report also found consumers to be unsure about the economic prospects in the southeastern Michigan area.

Business executives and economic experts are hopeful about improvements in sales, profit, private-sector employment, and real income through the end of the year. Although there is optimism from experts and executives, consumer spending is a large part of the economy and their outlook can slow or accelerate any economic change.

In addition to opinions regarding economic outlook, participants were asked on their view towards replacing gas taxes with a user fee based on distance driven over roadways in Michigan. The system would have higher rates for heavy vehicles, and participants were asked if they believe it to be an efficient, productive and smart way to finance Michigan’s transportation infrastructure.

Business executives, economic experts, and consumers were split in their agreement with the plan. Five out of the 8 economic experts agreed with the plan, consumers were split with slightly higher in favor, and business executives were split with slightly more against the plan.

In unison with the previous economic outlook, consumers and experts continue to disagree on the economy. While there are several indications that the economy is heading in the right direction according to experts, consumer outlook plays a major role in the economy. Consumers with less optimistic opinions on the economy tend to be more reserved in regards to spending. In order to continue improvements, companies should look to continue hiring which will in turn, lead to a more optimistic consumer outlook and encouraged spending.