The 45 west and southwest Michigan purchasing managers surveyed by the Institute for Supply Management Research June offered a negative business outlook.
“Regrettably, this month we hit a record low, as far as long-term business confidence is concerned--even lower than we were a few years ago at the onset, if you would, of the COVID recession.”
Brian G. Long is director of Supply Management Research in the Seidman College of Business at Grand Valley State University.
“Unfortunately, our short-term business confidence number doesn't look a whole bunch better.”
The fear is a recession is on the horizon. Long explains it’s not imminent pointing to some relief.
“All of the problems that the purchasing managers have had over the last two years or so seem to be getting better. That means that the supply bottlenecks are becoming less. They're having an easier time hiring people, not by a great margin, but some. The inflation problem is somewhat resolving itself because some of the major commodities are coming down in price.”
While automakers are experiencing a backlog of customer orders due to the semiconductor chip shortage, those vehicles are being produced keeping west and southwest Michigan auto parts suppliers busy.
