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Michigan Economy Sees Strong Third Quarter -- Comerica Index

1 November 1999

Michigan Economy Sees Strong Third Quarter -- Comerica Index

    DETROIT--Oct. 29, 1999--The Michigan Business Activity Index compiled by Comerica Bank jumped to a level of 165 in the third quarter of this year, up four points from the second quarter level of 161. By comparison, the index stood at 158 in the third quarter a year ago. Through nine months of this year, Michigan's economic performance is even with 1998.
    "The solid third quarter showing reflects much stronger steel and motor vehicle production in the state," said David Littmann, chief economist with Detroit-based Comerica. "Tight labor markets appear to be a constraining factor in any current or future growth comparisons with earlier periods."
    Year-to-date, Michigan's car and truck production is up 13.5 percent, housing permits are up 3.1 percent, and the consumer price index is up 2.4 percent, Littmann noted.
    The Michigan Business Activity Index represents 10 measures of Michigan economic activity compiled monthly by the Economics Department of Comerica Bank. The index is seasonally adjusted, corrected for inflation, and expressed on an index basis with base year 1982 equaling 100. The index series has been calculated monthly since 1957 and depicts state economic activity over seven full swings of the U.S. business cycle.