December reports for monthly economic indicators

•Unemployment rate decreases, while the number of employed increases (monthly)
•Purchasing manager’s index decreases (monthly)
•Commodity price index remains steady (monthly)
•Business and personal bankruptcies decrease (quarterly)
•Housing starts slightly increase (quarterly)
•Amount of personal incomes reported increases (quarterly)
Econ1

According to the most recent data provided by the Michigan Department of Technology, Management and Budget, the jobless rate for the month of October was at 18.9 percent in Detroit; it was at 9.1 percent for the state. While the state’s jobless rate remained fairly steady between September and October (it decreased by .2 percent), it increased by .8 percent in the City of Detroit during the same two months. Please note the chart shows Michigan’s unemployment rate for the month of November, which was 8.9 percent, but no November data for Detroit has been released.

Econ2

The number of employed in the city of Detroit increased by 747 people from September to October. This rising trend began in July. Between July and October 4,822 people became employed, according to the most recent data.

Econ3

According to the most recent data released on South Eastern Michigan’s Purchasing Manager’s Index, the number decreased 7 points from October to November; in November it was recorded at 51.9. The Purchasing Manger’s Index (PMI) is a composite index derived from five indicators of economic activity: new orders, production, employment, supplier deliveries, and inventories; a PMI above 50 means the economy is expanding. The PMI of 51.9 means the economy continues to expand. However, the 7 point drop means the economic growth is slowing down. The November 2012 index of 51.9 is about inline where it was at in November of 2011; the index at that time was recorded at 51.5.

Econ4

The Commodity Price Index, which is a weighted average of selected commodity prices for Southeast Michigan, has fluctuated throughout 2012. Most recently though, from October to November it has remained relatively unchanged. It went from 51.5 in October to 51.4 in November. The 51.4 score in November of 2012 is 8.6 points below where the Commodity Price Index was in November of 2011.

Econ5

Econ6

Both charts above show that the number of bankruptcies, both business and personal, filed in the Detroit Metropolitan Statistical area (Detroit-Livonia-Warren) have been declining over the last year. From the third quarter of 2011 to the third quarter of this year the number of business bankruptcies’ filed decreased by 141, and 84% decrease, and the number of personal bankruptcies filed decreased by 4,431, an 86% decrease.

Econ7

Between the second and third quarter of 2012 the number of housing starts in the Detroit Metropolitan Statistical Area began to level off at 4,482; this is about 50 starts above the second quarter of this year.

Econ8

According to the U.S. Bureau of Economic Analysis, total personal income is the income received by persons from all sources. These types of sources include monies received from participation in production, government, and business transfer payments. From the third quarter of 2011 to the third quarter of this year the amount of personal income residents in the Detroit Metropolitan Statistical Area has slightly increased. In the third quarter of 2011 the amount of personal income reported was  $171,903,000 and a year later it was reported at $180,561,000.

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