Michigan and the United States will see stronger economic growth due to federal tax reform, says Business Leaders for Michigan members in its latest quarterly survey released today.
About 52 percent of survey respondents also expect their companies’ capital investment in Michigan to increase during the next six months, while 45 percent expect it to remain the same. Nearly 61 percent expect employment in Michigan to increase.
“Optimism about the future had plateaued before tax reform passed,” says Doug Rothwell, president and CEO of the state’s roundtable made up of executives of the state’s largest companies. “This legislation is viewed as a major improvement to America’s business climate that will also help Michigan.”
Other highlights of the survey include 80 percent of business leaders having a positive view of U.S. economic growth over the next six months. This percentage is nearly double that of late last year. Similarly, 74 percent of respondents believe Michigan’s economic growth will improve during the same period. This is a nearly 30 percent increase from the third quarter of 2017. All of the respondents indicated they expected the same or better economic outcomes. None envision weakness at the state or national levels.
Over the next 18 months, however, optimism for the state’s economy drops. A majority of business leaders, or 58 percent, expect improvement, while 32 percent anticipate things will stay about the same. The remaining 10 percent expect a decline. Predictions for the nation’s economy remain positive for the next 18 months, with all survey respondents predicting the U.S. economy will stay the same or improve.