The Grand Rapids Business Journal/e-forecasting.com MI Leading Economic Indicator, Michigan’s early bird of economic activity, increased in May 2010 to a reading of 104.7, where 2000 is set equal to 100.
The private forecasting service said the composite Michigan index of state leading indicators, which is produced jointly with Grand Rapids Business Journal, went up 0.2 percent in May after an increase of 0.6 percent in April.
Five of the 10 components that make up Michigan’s Leading Indicator had a positive contribution in May: Unemployment Claims, Weekly Hours in Manufacturing, Exports of Manufactures, Consumer Expectations (Regional) and Interest Rate Spread. Five of the 10 components had a negative contribution to Michigan’s Leading Indicator in May: Building Permits, New Orders (Detroit Business), Stock Prices (National), Productivity Barometer (Detroit Business) and Employment Barometer.
Looking at its six-month growth rate, a signal of turning points, Michigan’s Leading Indicator went up by an annual rate of 8.4 percent in May, after an increase of 9.3 percent in April. This compares to a long-term annual growth rate of 1.3 percent, the same as the annual growth rate of the state’s overall economic activity.
Evangelos Simos is chief economist of the consulting and research firm e-forecasting.com.