“Despite the apparent uncertainty about the future, business confidence in our West Michigan survey continues to hold fairly steady.”
That’s Brian G. Long, Director of Supply Chain Management Research in the Seidman College of Business at Grand Valley State University.
“For March, our short-term index modestly up ticked, and our long-term index remained strong by historical standards. That doesn't sound like there's a recession in the mix anywhere soon.”
But tariffs and the war with Iran are driving up industrial market inflation.
“About 40% of our respondents are reporting price increases out of control. For the consumer, the good news is that industrial inflation does not automatically roll over into consumer inflation like it did years ago.”
Companies have improved efficiency and absorb rising costs by reducing their profit margin.
While there have been no major layoffs, Long continues tracking unemployment. Michigan has the fifth highest unemployment rate in the nation. In West Michigan, unemployment has climbed 1.5 percent over the past two years.