GR Growth Pace Slows A Bit

GRAND RAPIDS (WWJ) -- The West Michigan industrial economy is still growing, but at a slower pace, while the national economy remained modestly positive, according to the results of a monthly survey compiled by Brian G. Long, director of Supply Management Research in the Seidman College of Business at Grand Valley State University.

Long said the survey results are based on data collected during the last two weeks of July.

The survey's index of business improvement, called new orders, fell to +7 from +34 in June. The production index slid to +17 from +31 in June. The employment index fell to +21 from +25.

After three strong months, business activity slowed in July, primarily because of seasonal vacations, slower work schedules, and annual shutdowns in some key industries, Long said.

"If it weren't for the season and the fact that the statistics for the rest of the state, country and world are still on track, we could raise a question about the future," Long said. "However, one month never makes a trend, and the slightly slower numbers in our local report are probably nothing more than a summer hesitation."

The Institute for Supply Management survey is a monthly survey of business conditions that includes 45 purchasing managers in the greater Grand Rapids area and 25 in Kalamazoo. The respondents are from the region's major industrial manufacturers, distributors and industrial service organizations. It is patterned after a nationwide survey conducted by the Institute for Supply Management. Each month, the respondents are asked to rate eight factors as "same," "up" or "down."

An expanded version of this report and details of the methodology used to compile it are available at www.gvsu.edu/scblogistics.