West Michigan’s economy is slowing. The Federal Reserve has been raising interest rates since March of last year to gradually slow the economy in order to reduce inflation.
“The Fed still doesn’t want the economy to slow too fast. It’s like trying to balance a basketball on top of a pencil.”
Brian G. Long is director of Supply Management Research in the Seidman College of Business at Grand Valley State University.
September’s survey indicates local purchasing managers have turned “marginally negative”, describing new orders, production and purchases as “slowing.” Long says the two national surveys he tracks are also marginally negative.
“I underline marginally negative. Higher interest rates are starting to slow the economy, but none of the purchasing managers surveys that we follow at this time are anywhere near a recession level.”
Long points to low unemployment and surveyed firms having trouble finding skilled workers to fill positions.