Economic Indicators

U.S. Economy Grew at a 2.8% Rate in Q2 2024

Real gross domestic product (GDP) increased at an annual rate of 2.8 percent in the second quarter of 2024, according to the “advance” estimate. In the first quarter, real GDP increased 1.4 percent. The increase in the second quarter primarily reflected increases in consumer spending, inventory investment, and business investment. Imports, which are a subtraction in the calculation of GDP, increased. Read the full BEA report.

The GDP is measured as the total market value of the goods and services produced within a specific geography during a given time period. Gross domestic product is a key indicator of the general health of the economy and its performance, with increases indicative of economic growth.

Michigan’s Unemployment Rate Advances in June

Michigan’s June 2024 monthly unemployment rate increased 0.2 percentage points to 4.1%, matching the national unemployment rate.  The Detroit-Warren-Dearborn Metropolitan Statistical Area’s (MSA) unemployment rate increased 0.2 percentage points over the month to 4.1% during June.

U.S. Economy Grew at a 2.8% Rate in Q2 2024

Real gross domestic product (GDP) increased at an annual rate of 2.8 percent in the second quarter of 2024, according to the “advance” estimate. In the first quarter, real GDP increased 1.4 percent. The increase in the second quarter primarily reflected increases in consumer spending, inventory investment, and business investment. Imports, which are a subtraction in the calculation of GDP, increased. Read the full BEA report.

The GDP is measured as the total market value of the goods and services produced within a specific geography during a given time period. Gross domestic product is a key indicator of the general health of the economy and its performance, with increases indicative of economic growth.

Inflation Continues to Slow in June 

In June, the Consumer Price Index for All Urban Consumers fell 0.1%, seasonally adjusted, and rose 3.0% over the last 12 months, not seasonally adjusted. The index for all items less food and energy increased 0.1% in June (SA); up 3.3% over the year (NSA). The all items index rose 3.0% for the 12 months ending June, a smaller increase than the 3.3% increase for the 12 months ending May. The all items less food and energy index rose 3.3% over the last 12 months and was the smallest 12-month increase in that index since April 2021. The energy index increased 1.0% for the 12 months ending June. The food index increased 2.2% over the last year. Read the full report.

According to the University of Michigan Surveys of Consumers, consumer sentiment registered at 66.0 in July 2024. According to Surveys of Consumers director, Joanne Hsu, sentiment is more than 30% above the trough from June 2022, it remains stubbornly subdued. Nearly half of consumers continue to express concern about high prices, even as inflation is expected to continue moderating in the years ahead. With the upcoming election, consumers perceived substantial uncertainty in the economy’s trajectory, though there is little evidence that the first presidential debate altered their economic views. Read the full report. 

 The Consumer Sentiment Index is a statistical measurement that provides an economic indicator of consumers’ opinion and optimism of the state of the economy. 

Detroit Region’s Jobs Decreased in May 2024

The Detroit MSA’s monthly payroll jobs decreased by 700 to 2,047,100  in May 2024. Payroll jobs is above 5,600 jobs compared to May 2019 pre-pandemic levels.

Michigan’s Labor Force Participation Remained Steady For the Fourth Consecutive Month

The May statewide labor force participation rate remained unchanged at 62.3 percent. Michigan’s LFPR sits 0.3 percentage points below the national rate of 62.6%.

Michigan’s New Business Applications Decreased in June

New business applications decreased 20% month-over-month amounting to 10,252 in June 2024. Business applications have declined for fifth consecutive months compared to the previous year, signaling a slow down in entrepreneurship activity.

PMI® Contracted For The Third Consecutive Month in June

The Manufacturing PMI® registered at 48.5% in June, down 0.2 percentage points compared to May’s reading of 48.7%, according to the Institute for Supply Management® (ISM®).  According to Timothy Fiore, Chair of the Institute for Supply Management Manufacturing®, after breaking a 16-month streak of contraction by expanding in March, the manufacturing sector has contracted the last three months, and at a faster rate in June.

ISM® states a reading above 50% shows that the manufacturing economy is generally expanding; below 50% indicates that it is generally contracting. The index is based on a monthly survey of supply chain managers and measures general direction of economic trends in manufacturing and other sectors.

Passenger Traffic Increases Year-over-Year

Detroit Metropolitan Airport experienced a 8.1% increase in total passengers in June 2024 totaling 3.0 million passengers compared to June 2023.