The biggest thing on most people’s minds on a daily basis is how they’re going to afford things that cost more now than they have in years. You know, like those big extravagant things like food, clothing, and child care.
It’s in this backdrop that we take a look at an important indicator of the health of Michigan’s economy: consumer sentiment.
Here are Five Fast Facts on Michigan’s current economy:
- 👎 Most Think It Sucks - Consumer sentiment is a monthly survey of consumers and what they think about the economy, personal finances, business conditions, and buying conditions. The June report on consumer sentiment showed a 7-month low after dropping 1.3% from May. Or maybe they just don’t like summer…?
- 😣 Put That In Context - The current level is actually below the level it was at the start of five of the six recessions that have taken place since the survey started back in the 1970s. Small business owners agree with consumers - it sucks.
- 📈 Poverty On The Rise - A recent report shows that the number of households living below the poverty line in Michigan is up by almost 90,000, to 13% (based on 2022 data, the most recent available). 😭
- 🤯 ALICE Grows, Too - Perhaps even more disturbing is the increase in households considered ALICE (Asset Limited, Income Constrained, Employed) conditions - these are folks who earn too much to qualify for state or federal assistance but still struggle financially even when working one or more jobs. That number shot up to 28%. Add that to the poverty number, and you’ve got 41% of the households in the state living under severe financial strain. Hide the pitchforks, don’t give anyone any ideas.
- 🤔 A Bright Spot (Maybe) - Gov. Whitmer recently celebrated Michigan’s decreasing unemployment rate, which is now at 3.9%. It’s the first time in over a year that it’s been below the national average. While that seems great, one wonders how the multiple jobs from those ALICE folks might be skewing the number, and if it’s really quite the victory we would want to see.
🔥Bottom line: There continues to be a disconnect between what the economists and talking heads say you should be feeling, and what the working class normal folks actually feel. Lots of people have taken second (or third) jobs to try to make ends meet, and they’re still struggling.
What do you think of the MI economy?
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