The Michigan Business Activity Index (MBAI) dropped 1 point in November to 101, down approximately 3 percent from one year ago, the lowest reading since September 2001, according to statistics compiled by Comerica Bank.
So far this year, the index has averaged 2.4 percent less than it did in 2005.
"With the Michigan-based auto companies cutting production to pare excessive inventories of SUVs and light trucks, it is no surprise that our index shows the state economy struggling as 2006 was drawing to a close," said Dana Johnson, Chief Economist at Comerica Bank. "More auto-sector buyouts, declining homebuilding, and sluggish national growth is likely to keep our index depressed in early 2007."
The MBAI represents ten different measures of Michigan economic activity compiled monthly by the Economics Department of Comerica Bank.