Economic Indicators

Consumer Sentiment Improves for the First Time in Six Months

The University of Michigan Surveys of Consumers, consumer sentiment registered at 60.5 in June 2025. According to Surveys of Consumers director, Joanne Hsu, consumer sentiment climbed 16% from last month but remaining about 20% below December 2024, when sentiment had exhibited a post-election bump. These trends were unanimous across the distributions of age, income, wealth, political party, and geographic region. Moreover, all five index components rose, with a particularly steep increase for short and long-run expected business conditions, consistent with a perceived easing of pressures from tariffs. Read the full report. 

Michigan’s Unemployment Rate was Unchanged in April

Michigan’s April 2025 monthly unemployment rate was unchanged, remaining 1.3 percentage points below the national rate of 4.2%.

The U.S. GDP Shrank in First Quarter in 2025

U.S. gross domestic product, adjusted for inflation, declined at an 0.3 percent annual rate in the first three months of the year.  Inventories, spending and investments were solid, however growth was slowed by a surge in imports as companies moved goods in advance of potential tariffs. Read the full BEA report.

The GDP is measured as the total market value of the goods and services produced within a specific geography during a given time period. Gross domestic product is a key indicator of the general health of the economy and its performance, with increases indicative of economic growth.

Inflation Rose in May 2025, Less Than Expected

In May, the Consumer Price Index for All Urban Consumers rose 0.1 percent, seasonally adjusted, and rose 2.4 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy increased 0.1 percent in May (SA); up 2.8 percent over the year (NSA). Read the full report.

Consumer Sentiment Improves for the First Time in Six Months

The University of Michigan Surveys of Consumers, consumer sentiment registered at 60.5 in June 2025. According to Surveys of Consumers director, Joanne Hsu, consumer sentiment climbed 16% from last month but remaining about 20% below December 2024, when sentiment had exhibited a post-election bump. These trends were unanimous across the distributions of age, income, wealth, political party, and geographic region. Moreover, all five index components rose, with a particularly steep increase for short and long-run expected business conditions, consistent with a perceived easing of pressures from tariffs. Read the full report. 

Michigan’s New Business Applications Slow in First Quarter of 2025

New business applications have dropped by 7% in the first quarter of 2025 compared to Q1 2024 but are still well above the pre-pandemic levels. The tightening of the credit market and uncertainty surrounding tariff policies most likely attributing to the continued slowing of applications in 2025.

Economic Activity in the Manufacturing Sector Contracted in May for the Third Consecutive Month

The Manufacturing PMI® registered at 48.5% in May, 0.2 percentage point lower compared to the 48.7 percent reported in April according to the Institute for Supply Management® (ISM®).  

ISM® states a reading above 50% shows that the manufacturing economy is generally expanding; below 50% indicates that it is generally contracting. The index is based on a monthly survey of supply chain managers and measures general direction of economic trends in manufacturing and other sectors.