Michigan Leading Economic Indicator for January 2010
The Grand Rapids Business Journal/e-forecasting.com MI Leading Economic Indicator, Michigan's early bird of economic activity, increased in January 2010 to a reading of 102.7, 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 1.1 percent in January after an increase of 1.1 percent in December.
Nine of the 10 components that make up Michigan's Leading Indicator had a positive contribution in January: Unemployment Claims, Weekly Hours in Manufacturing, Building Permits, Exports of Manufactures, Consumer Expectations (Regional), Stock Prices (National), Interest Rate Spread, Productivity Barometer (Detroit Business) and Employment Barometer.
Only one of the 10 components had a negative contribution to Michigan's Leading Indicator in January: New Orders.
Looking at its six-month growth rate, a signal of turning points, Michigan's Leading Indicator went up by an annual rate of 8.3 percent in January, after an increase of 6.2 percent in December. This compares to a long-term annual growth rate of 1.4 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.