Economic Outlook for Michigan: Steady Growth and Inflation Management

Michigan’s economy is expected to have a strong start in 2024, with steady job growth, low unemployment, and lower inflation predicted by University of Michigan economists. Despite the challenges posed by high interest rates, both the U.S. and Michigan economies have fared better than expected. The director of the Research Seminar in Quantitative Economics at UM, Gabriel Ehrlich, foresees the economy reaching a ‘soft landing’ from the recent surge in inflation.

In their forecast for Michigan, the economists predict that the state will add around 76,000 jobs in 2024-25, with an unemployment rate expected to remain just below 4%. However, they also note that there will be some challenges and uncertainties ahead. For example, while real disposable income in Michigan is projected to be modest with a slight decline in 2024 followed by a small rise in 2025.

On a national level, the U.S. economy is projected to maintain its positive momentum but may experience a slight slowdown in the near future due to potential concerns related to consumer behavior such as rising credit card and auto loan delinquencies as well as slowing consumer credit growth and stagnant vehicle sales. Despite these challenges, experts suggest that careful monitoring of consumption patterns and financial indicators will be crucial in determining future economic prospects.