Michigan Economy 2025: The Split No One Wants to Admit

A vertical split-screen image contrasting economic hardship and affluence. Left: A middle-aged couple sits at a dimly lit, cluttered kitchen table covered in bills and receipts, both with worried expressions. Right: A smiling, well-dressed group (one man, two women) walks confidently through a bright, luxurious shopping arcade, carrying designer bags from brands like Chanel and Prada.

The Detroit Regional Chamber’s September 2025 Michigan Statewide Voter Survey, conducted by the Glengariff Group, offers a snapshot of a state both resilient and restless. The data reveal a public that sees signs of economic stabilization but remains haunted by high costs, uneven opportunity, and deep uncertainty about what lies ahead. Over the next six months, the outlook hinges on whether consumer confidence and job quality can overcome the drag of inflation and tariff pressure.

Michigan’s Mood: A Narrow Majority Feels the State is on Track

For the first time since early 2025, more than half of Michigan voters, 51.5 percent, say the state is on the right track, compared to 33.7 percent who believe it is on the wrong one. This modest optimism stems mainly from independents, whose right-track sentiment jumped from 44.7 percent in April to 52.3 percent in September. Strong Republican voters also showed a notable uptick, from 20.9 percent to 34.0 percent. These shifts suggest a fragile coalition of confidence that extends beyond partisan lines, even as economic doubts persist.

But when asked specifically about the economy, Michiganders are divided. Forty-two point four percent say it is on the right track, and 42.8 percent say it is not. This statistical split highlights a state where people may feel better about direction and leadership than about their wallets.

Political identity shapes how people read the same economic facts. This is normal and well documented. Pew shows that views of national economic conditions swing with party control of the White House, with Republicans turning more positive and Democrats more negative in 2025. Gallup reports the same flip in its Economic Confidence Index following the 2024 election, driven by Republicans becoming more upbeat and Democrats more downbeat. Political scientists describe this as motivated reasoning or partisan bias in perception, where people seek and interpret information that affirms prior loyalties rather than updating neutrally. 

Grouped bar chart titled “Economy Is Growing: Michigan Voters by Party.” X axis lists Strong Democratic, Lean Democratic, Independent, Lean Republican, Strong Republican. Y axis is percent from 0 to 100. Four series labeled Sept 2024, Jan 2025, April 2025, Sept 2025. Strong and Lean Democrats are high in Sept 2024 and Jan 2025 at about 62 to 70 percent, then fall to about 14 to 18 percent by April and Sept 2025. Independents are 35.6 in Sept 2024, 34.9 in Jan 2025, dip to 25.4 in April 2025, then rise to 43.2 in Sept 2025. Lean Republicans rise from 10.2 in Sept 2024 to 53.5 in Sept 2025. Strong Republicans rise from 6.9 in Sept 2024 to 60.2 in Sept 2025. Note shows recession reasons among those saying recession: inflation and costs 49.1 percent, job reduction 17.0 percent, tariffs 13.2 percent. Source Michigan Statewide Voter Survey Sept 2025, Glengariff Group for Detroit Regional Chamber.
Inflation: The Persistent Undercurrent

Inflation remains the state’s defining economic anxiety. Among voters who say Michigan’s economy is on the wrong track, 38.8 percent cite inflation and the cost of goods as the main reason, up sharply from 22.9 percent in May. Three out of four residents, 75.8 percent, report paying more for groceries, two thirds, 68.1 percent, for utilities, and 60.4 percent for home or auto insurance. These figures cut across demographics and party lines.

The pain of rising costs has not translated into universal despair. Roughly 72.6 percent of voters say they are doing better or about the same as a year ago. Yet, of the 27.1 percent who say they are doing worse, a majority, 55.2 percent, blame inflation. Only 16.8 percent say they are doing better, often due to wage increases, promotions, or new jobs, small but meaningful signs of labor-market movement.

Jobs and Hiring: The Confidence Gap

Just over half, 52.0 percent, believe good-paying jobs are available, a drop of eight points since May. That decline is led by Democratic voters, only about one third of whom see strong job prospects. Independents, 60.4 percent, and Republicans, roughly two thirds, are more upbeat. Still, four in ten Michiganders say they know someone looking for work, and 77.8 percent of them say it has been hard to find a job. Among those aware of recent college graduates, 77.0 percent say the same.

This sentiment gap, between perceived availability of good jobs and personal experience finding them, underscores a labor market that feels tight on both sides. For employers, it signals lingering competition for skilled workers even as wage pressure softens. For job seekers, especially younger and lower-income workers, it reflects frustration that openings do not always translate into sustainable pay.

Tariffs: A Clear Economic Flashpoint

Michigan’s manufacturing base feels the bite of global policy more than most. Voters oppose the expanded tariffs by a 51.2 to 40.8 margin. A majority, 71.5 percent, say tariffs have increased what they pay for goods, and 60.3 percent believe tariffs are hurting the state’s auto industry. Nearly half expect smaller profit-sharing checks for auto workers this year.

Those numbers suggest that what was once an abstract policy debate has become a daily reality for Michigan households. The rising costs of vehicles, materials, and inputs are trickling through to local economies. Yet, some blue-collar workers remain more supportive of tariffs than their white-collar counterparts, indicating that the political divide over trade is tied to identity as well as economics.

stack of deliquent bills on a kitchen table with a bag of groceries and a tv out of focus in background
Artificial Intelligence: A Dividing Line Between Opportunity and Anxiety

Nearly half of Michigan voters (47.5%) report using AI in their personal or professional lives, but optimism about its benefits is muted. Only 23.7% believe AI will make Michigan more prosperous, while 39.4% think it will make the state less so. A majority (61.0%) expect AI to lead to fewer jobs, not more Fall-2025-Michigan-Voter-Poll . The divide between white-collar and blue-collar voters is striking: 71.6% of white-collar workers say they use AI, compared to just 36.6% of blue-collar workers. This gap reveals an emerging structural challenge: whether technology adoption will widen or bridge economic divides. If Michigan’s industrial base fails to reskill its workforce at pace with automation, that pessimism could become self-fulfilling.

The Next Six Months: Two Diverging Roads
Optimistic scenario: Inflation continues to cool, tariffs stabilize, and employers—especially in automotive and advanced manufacturing—resume hiring to meet long-term production goals. Wage growth steadies, confidence rises among independents, and consumer spending normalizes into early 2026. Negative scenario: Inflation expectations, already high (43.1% expect it to worsen), drag on real wages. Tariff-driven costs ripple through Michigan’s manufacturing base, curbing output and dampening profit-sharing. Job openings persist, but workers remain mismatched or underpaid. In that climate, optimism could collapse as quickly as it rebounded. The September 2025 survey captures a moment of balance—between endurance and fatigue, adaptation and anxiety. Whether Michigan leans toward renewal or retrenchment will depend less on macroeconomic forces and more on how effectively its employers, educators, and policymakers convert short-term strain into long-term resilience.

Michigan Economy 4Q Outlook 2025: Shutdown Adds New Headwinds

A quiet auto plant shipping dock at midday. Shrink-wrapped pallets with 'HOLD' labels are stacked in rows. A clipboard in the foreground reads 'EPA permit on hold'. Several forklifts are idle near closed dock doors, and a wall clock shows 12:00 noon.

Federal shutdown stalls permits, freezes loans, hits tourism and auto supply chains, eroding confidence across Michigan manufacturers, consumers, and businesses.

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Whiplash Economy: The Impact on Manufacturing Jobs

If 2024 has taught us anything, it’s that the economy is like a rollercoaster you never quite signed up for. Earlier this month, we had a less-than-stellar jobs report—cue the collective sigh of disappointment. The U.S. economy added fewer jobs than expected, falling short of projections and rattling market confidence. For a moment, it felt like the rug was being pulled out from under us again, especially for the manufacturing sector, which has been caught in a downward spiral for most of the year.

Early August Panic and Sudden Recovery
In the days following the jobs report, the market had a brief but intense panic attack, reminiscent of the wild whipsaw reactions we’ve become accustomed to in recent years. The Dow took a dive, dragging spirits down with it. Analysts began sounding the alarm, predicting that the economy was losing steam faster than anticipated. Manufacturing, already battered by supply chain woes and fluctuating costs, braced for another blow as hiring seemed destined for the slow lane.

But just as we were buckling up for more turbulence, the narrative flipped. Inflation data started showing a much-needed cool-down, and suddenly, the Fed’s iron-fisted grip on interest rates seemed ready to loosen. The markets, always fickle, reversed course, with stocks rebounding almost as quickly as they had fallen. The prospect of a Fed rate cut in September emerged, injecting a dose of optimism into an economy that had seemed on the brink just days earlier.

The Tug-of-War on Manufacturing Jobs
For the manufacturing sector, these back-and-forth waves have been particularly jarring. On one hand, the disappointing jobs report raised fears of continued layoffs and a tightening labor market. On the other, the improving economic indicators like cooling inflation and strong retail performance from giants like Walmart offer a glimmer of hope. Could this finally be the turn manufacturing has been waiting for?

There’s a case to be made for cautious optimism. If the Fed does cut rates in September, manufacturers could see lower borrowing costs, which might prompt some to invest in growth and, by extension, jobs. Stable input costs, driven by cooling inflation, would also provide much-needed relief. But let’s not break out the champagne just yet. The sector is still licking its wounds from earlier in the year, and hiring might remain conservative until there’s more certainty that this recovery isn’t just another false dawn.

Navigating the Mixed Signals
The economy’s current state is like a rickety bridge, wobbling under the weight of mixed signals. For every piece of good news, like the potential for a Fed rate cut, there’s a reminder of the fragility that still exists, such as the weak jobs report. Manufacturing, as always, is caught in the middle. The sector’s recovery will likely be slow and uneven, with businesses cautious about adding to their workforce until they see sustained signs of stability.

In the meantime, manufacturing workers and employers alike will need to stay agile, navigating these unpredictable waters with a mix of hope and pragmatism. The economy may be sending out mixed signals, but one thing is clear: the ride is far from over.

The U.S. Economy: Is There ANY Bad News?

As we welcome 2024, the landscape of economic forecasts has been in a constant state of flux, especially throughout the holiday season. As we step into the new year, one can’t help but wonder about the prospects of the 2024 US economy. Amidst a stream of headlines, many of which lean towards the positive, we find ourselves sifting through the information – eager to uncover the encouraging trends while also remaining vigilant for any potential challenges that may lie ahead.

Inflation is Under Control

One of the most remarkable aspects of the current economic situation is the successful containment of inflation. For years, concerns about rising prices have dominated discussions, but now we find ourselves in a scenario where inflation is finally under control. In 2023, the annual inflation rate saw a significant decline, falling from its peak of 7.5% earlier in the year to a more manageable 2.6% by November. This marked decrease reflects the effectiveness of the Federal Reserve’s monetary policy and its commitment to price stability.

The core inflation rate, which excludes volatile food and energy prices, also exhibited a noteworthy deceleration. In the same period, core inflation dropped from 5.2% to 3.2%. This demonstrates that the pricing pressures affecting essential goods and services are diminishing, providing relief to American households.

Policymakers at the Federal Reserve have been resolute in their efforts to keep price pressures in check, ensuring that Americans can maintain their purchasing power. Their commitment to a long-term inflation target of 2% has played a pivotal role in fostering stability and predictability in our daily lives. As we look ahead to 2024, the outlook for inflation remains positive, with a well-managed and controlled inflationary environment contributing to the overall strength of the US economy.

The Fed Looks to Hold Longer Than Expected

The Federal Reserve’s decision to maintain higher interest rates for an extended period might initially appear to be a cautious move. Still, it’s important to recognize the wisdom behind it. Since peaking in 2022, the Fed’s favored inflation gauge has fallen sharply, reaching an annual rate of 2.6 percent in November. This marked decrease in the inflation rate is a testament to the central bank’s commitment to its mandate of ensuring price stability.

By resisting immediate rate cuts, the Federal Reserve demonstrates its confidence in the effectiveness of its policies. Rather than reacting hastily to short-term fluctuations, the Fed is taking a deliberate approach to safeguard the economic gains achieved in recent years. This measured stance is essential for maintaining the long-term health and resilience of the US economy, and it provides businesses and consumers with a sense of stability and confidence as we navigate the economic landscape of 2024.

The Job Market Remains Strong

One of the most encouraging aspects of the current economic scenario is the solid job gains. In December, employers added a robust 216,000 jobs, exceeding expectations. Notably, the unemployment rate held steady at a low 3.7%, showcasing a year-over-year improvement compared to the previous year’s 3.5% rate.

Furthermore, manufacturing jobs, a critical component of the U.S. economy, have continued to play a pivotal role. While the overall job market is thriving, manufacturing employment has shown resilience, with the average workweek remaining largely unchanged at 39.8 hours in December. Overtime in manufacturing also remained consistent at 2.9 hours. Although manufacturing employment experienced some fluctuations in 2023, it remained a crucial contributor to the nation’s workforce, supporting the broader economic growth story.

As we embark on a new year, it’s clear that the United States is in an enviable economic position. Inflation is under control, the stock market is factoring in measured rate cuts, and job gains remain solid while unemployment stays low. When we ask, “What’s the Bad News?” it’s challenging to find significant negative aspects in our current economic landscape. This positivity is a testament to the resilience, adaptability, and strength of the US economy. As we move forward, we can appreciate the strides we’ve made and face any potential challenges with confidence and determination.

So What’s the Bad News?

Even though the traditional measurements for economic health remain relatively strong, there are underlying issues that linger beneath the economic shine:

The US debt pile surpassed $33 trillion in 2023, up more than $3 trillion during the year and $10 trillion since 2019, the last calendar year before the COVID-19 pandemic. Meanwhile, the latest Congressional Budget Office (CBO) projections point to a budget deficit that will be above 5% of gross domestic product (GDP) for the next ten years. 

At this rate, the amount of US government debt could surpass $50 trillion by 2033. This, at a time of higher interest rates (at least for now), could mean that, by 2031, the country spends more on interest payments than it does on non-defense discretionary expenditures (such as funding for transport, education, health, international affairs, natural resources and the environment, and science and technology). This is unsustainable.

Manufacturing also seems to be struggling to grow in these uncertain times, but remains resilient.  There is also a gap in perception between the reduction of inflation and what people are actually feeling at the cash register. 

Even though the numbers are trending in the right direction and gas (at this moment) is under $3 per gallon, there is a discrepancy between the actual economic conditions and public perception, particularly regarding inflation. Many Americans feel that the economy and inflation are worse than they actually are.

And finally, The US economy’s projected performance in 2024 suggests modest growth, with an expected real GDP increase of only 1.0%, a deceleration from the 2.4% growth anticipated in 2023. This forecast, as reported by Barclays Investment Bank and Barclays Private Bank in November 2023, indicates a slowing economy compared to previous years. In 2022, the GDP growth was 1.9%, with consumer price index (CPI) inflation at 8.0%, and the unemployment rate at 3.6%. Looking ahead to 2024, the CPI inflation is forecasted to ease to 2.6%, while the unemployment rate is expected to slightly increase to 4.2%. The gross public debt is projected to rise to 126.2% of GDP, up from 122.0% in 2022 and 123.2% in 2023. Private consumption, which was at 2.5% in 2022, is anticipated to further slow down to 1.1% in 2024. Despite these modest figures, the US economy’s performance still compares favorably with many European nations.

As we approach the new year, there is a blend of encouraging news and the usual uncertainties. Let’s maintain a steady course, fostering a spirit of optimism and hope, as we continue to propel forward on this journey.