Economic Indicators

The U.S. Economy Grew in Q2 2025

Real gross domestic product (GDP) increased at an annual rate of 3.3 percent in the second quarter of 2025 (April, May, and June), according to the second estimate released by the U.S. Bureau of Economic Analysis. In the first quarter, real GDP decreased 0.5 percent. The increase in real GDP in the second quarter primarily reflected a decrease in imports, which are a subtraction in the calculation of GDP, and an increase in consumer spending. These movements were partly offset by decreases in investment and exports. Read the full BEA report.

The GDP is measured as the total market value of the goods and services produced within a specific geography during a given time period. Gross domestic product is a key indicator of the general health of the economy and its performance, with increases indicative of economic growth.

Michigan’s Unemployment Rate Stays Constant in July 2025

Michigan’s July 2025 monthly unemployment rate was unchanged over the month, remaining at 5.3% during July, along with the Detroit Regions. The national unemployment rate increased by o.1 of a percentage point over the month to 4.2%. Michigan’s unemployment rate in June was 1.1 percentage points larger than the U.S. rate.

Employment Levels Up From the Previous Month in the Region 

Nonfarm employment in the Detroit Region reached 2,061,500 in July 2025, marking a 0.2% increase from the previous month. In contrast, overall employment across Michigan declined by 0.1% to 5,077,000, its lowest level since August 2024.

Job Postings Ramped Up in July 2025

In July 2025, total job postings in the Region reached 97,935—marking an 11% increase compared to the previous month. Registered nurses have emerged as the most in-demand occupation in 2025 so far, with over 15,000 postings recorded through July.

The U.S. Economy Grew in Q2 2025

Real gross domestic product (GDP) increased at an annual rate of 3.3 percent in the second quarter of 2025 (April, May, and June), according to the second estimate released by the U.S. Bureau of Economic Analysis. In the first quarter, real GDP decreased 0.5 percent. The increase in real GDP in the second quarter primarily reflected a decrease in imports, which are a subtraction in the calculation of GDP, and an increase in consumer spending. These movements were partly offset by decreases in investment and exports. Read the full BEA report.

The GDP is measured as the total market value of the goods and services produced within a specific geography during a given time period. Gross domestic product is a key indicator of the general health of the economy and its performance, with increases indicative of economic growth.

Inflation Increased in August 2025

In August, the Consumer Price Index for All Urban Consumers rose 0.4 percent, seasonally adjusted, and rose 2.9 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy increased 0.3 percent in August (SA); up 3.1 percent over the year (NSA).  Read the full report.

Consumer Sentiment Worsens in September

The University of Michigan Surveys of Consumers, consumer sentiment registered at 55.4 in September 2025. According to Surveys of Consumers director, Joanne Hsu, consumer sentiment moved down less than three index points in early September. This month’s easing in economic views was particularly strong among lower and middle income consumers. Buying conditions for durables improved, while all other index components fell. Consumers continue to note multiple vulnerabilities in the economy, with rising risks to business conditions, labor markets, and inflation. Likewise, consumers perceive risks to their pocketbooks as well; current and expected personal finances both eased about 8% this month. Trade policy remains highly salient to consumers, with about 60% of consumers providing unprompted comments about tariffs during interviews, little changed from last month.  Read the full report. 

Michigan’s New Business Applications Move Higher in Q2 2025

In the second quarter of 2025, seasonally adjusted new business applications rose by 7% from the previous quarter, reaching a total of 34,794. Although this marks a decline from the exceptional highs seen during the pandemic, application numbers continue to hold strong compared to pre-pandemic benchmarks.

Economic Activity in the Manufacturing Sector Contracted in August for the Sixth Consecutive Month

The Manufacturing PMI® registered at 48.7% in August, a 0.7 percentage point higher compared to the 48.0 percent reported in July according to the Institute for Supply Management® (ISM®).  

ISM® states a reading above 50% shows that the manufacturing economy is generally expanding; below 50% indicates that it is generally contracting. The index is based on a monthly survey of supply chain managers and measures general direction of economic trends in manufacturing and other sectors.