Comerica Bank’s Michigan Economic Activity Index grew three-tenths of a percentage point in August. The report suggests auto and home sales contributed to the increase.
But Chief Economist Robert Dye says a strong US dollar is a negative factor for Michigan’s economy
“A strong dollar creates intense price competition, for exporters who are trying to who are trying to ship overseas, ” Dye says. “And also for producers with domestic markets who are facing price completion from importers coming into the US. So this does put a headwind on US manufacturing.”
Dye says another obstacle to economic growth is the decrease in demand for oil and natural gas.
He says looking into the future he expects auto sales to level out and for home sales to continue to boost the economy…though perhaps at a slower rate.