Comerica Bank‘s Michigan Economic Activity Index rose by two points in July to a level of 107.9, the highest it has been since November 2003 and 48 points, or 88 percent, above the low of 59.9 it hit during the recession in June 2009.
The index has averaged 103 points this year, 12 points above the average for 2011. It rose 5.9 points from May through July.
“The Michigan economy accelerated rapidly this summer,” said Robert Dye, the bank’s chief economist, in a news release. “Job creation picked up again in July, while housing markets are showing signs of improvement, with sales and prices increasing.”
Dye said it also bodes well for the next index that August U.S. vehicle sales increased to 14.5 million units.
The index consists of seven variables — nonfarm payrolls, exports, sales-tax revenues, hotel occupancy rates, continuing claims for unemployment insurance, building permits and motor vehicle production. The data are seasonally adjusted and indexed to a base year of 2004.
Tom Henderson, Crain’s Detroit