West Michigan economy marks 9th month of growth, but inflation concerns mount
West Michigan’s economy expanded for the ninth consecutive month in September.
GRAND RAPIDS — West Michigan’s economy expanded for the ninth consecutive month in September.
However, growth slowed as surging inflation and persistent tariffs weighed on regional industrial leaders, according to a Grand Valley State University report.
The latest survey of regional purchasing managers by Brian Long, director of supply management research at GVSU’s Seidman College of Business, points to a resilient industrial sector facing mounting headwinds. While key metrics tracking new business and production remained in positive territory, they both registered notable month-over-month declines.
The slowdown comes alongside sharp cost increases. Driven by material shortages and international trade tariffs, Long noted that the regional industrial price index has reached its highest level since the COVID-19 pandemic, with several survey respondents reporting unprecedented inflationary pressures.
Despite strong business confidence and an unemployment rate that continues to beat the Michigan state average due to a diverse regional economy, consumer sentiment dropped significantly in September, nearing historical lows.
Major regional sectors — including automotive parts manufacturing and office furniture — are actively restructuring to adapt to ongoing global geopolitical conflicts, trade policies, and shifting market demand.
By the numbers
Key survey indicators (September vs. August):
- New orders: +18 (down from +30)
- Production: +18 (down from +21)
- Employment: +6 (down from +11)
- Lead times: +30 (down from +36)
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