Michigan’s business climate is healthy and expected to grow in the next quarter but below the national rate, according to a new report released today from Citizens Bank. The report revealed companies have expanded since the first quarter of 2017 after 15 previous quarters of retrenchment.
“Michigan has a very strong knowledge-based economy and is a great state to do business in,’’ says Rick Hampson, president of Citizens Bank, Michigan. “Companies hate uncertainty, and there has been a lot of uncertainty in the global economy recently, which has put some corporate plans on pause. However, most of our companies have long track records of success and will be able to handle whatever comes at them.’’
The Michigan business index was at 51.6 for the second quarter. An index greater than 50 indicates an expansionary trend and points to improved business conditions for the next quarter. Nationally, the business index is 61.2, down slightly from the first quarter’s 61.5.
The index is derived from both proprietary and public information about business growth and employment across the country, using data gathered from private and public companies about revenue, manufacturing volumes, and wages. The index pulled data from companies that have between $10 million and $5 billion in annual revenue.
“With the current boom now in its 11th year, many business leaders are wondering when the good times are going to end,” says Tony Bedikian, head of global markets for Citizens Commercial Banking. “This index provides a tool to help clients get ready for what’s next. There is a growing sense of uncertainty about a range of factors including trade, Fed rates, Brexit, and the 2020 election, just to name a few. Businesses should seize every opportunity to assess the economic landscape and make informed decisions on how to hedge their risks.”
Citizens Commercial Banking partners with more than 7,000 middle market and mid-corporate clients across the country. The company is based in Rhode Island. Its Michigan headquarters are based in Southfield.