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Manufacturing Boosts Growth in Great Lakes Area

All regions had an improvement in their economic activity index in the three months through April. The largest gain was in the still depressed Great Lakes region.

June 06, 2011

All regions had an improvement in their economic activity index in the three months through April. The largest gain was in the still depressed Great Lakes region driven by a surge in both auto and machinery production. The annual growth pace in the last three months jumped to 10.0% in Ohio, 8.3% in Michigan and 6.4% in Indiana. The economic activity index rose to 6.9% in South Carolina which now has a significant share of the auto industry (BMW) but Kentucky (Toyota) had only 4.0% growth in the last three months.

Auto production will weaken in the spring due both to consumers turning more cautious in the face of soaring gasoline price and increasing general inflation and to production cutbacks forced by shortages of Japanese auto parts. The impact will be much bigger in the Southeastern than in the Great Lakes states.

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Source: Reed Construction Data

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