West Michigan economists project a slow but positive 2016.
"It’s going to be a pretty decent year in west Michigan, just not quite as nice as it was the year before."
That’s Dr. Paul Isely of the Seidman College of Business at Grand Valley State University.
"Last year was a little slower than the year before. This year’s going to be a little slower than that," he says. "But it’s still going to be fast enough that we’re going to have growth, and people are going to get jobs."
In his annual economic forecast, Isely says all signs point to economic growth – just slower than the years before.
He says a driver of that growth is also shifting from manufacturing to service-based industries.
Income movement may also trend upward in 2016.
"We’re seeing incomes go up – particularly in the middle range. So it’s going to be a good year for the middle class," he says. "Those people earning between $35,000 and $80,000, they’re going to see their incomes go up. They’re going to see their costs for things like fuel stay low."
Isely says the big questions include millennial lifestyles and the probability of a recession in the next couple of years.
"We’re seeing ‘17, ’18, ’19 building probability of a recession," he says. "Probably won’t happen in ‘17, but we’ll start to see it building probability as we head into it."
Other unknowns: National economic growth compared to the international marketplace, this year’s Presidential election, and how rising wages may interact with a business’ bottom line.
