Key Takeaways
Economic Findings and Inflation
A majority of voters continue to believe Michigan is on the “right track” overall, with the lowest “wrong track” numbers since before the COVID-19 pandemic. This correlates with an 11.5% increase in voters who say they are doing “better” or the “same” from September 2024.
Voters remain equally split on the state’s economic direction by a margin of 42.9% “right track” to 42.2% “wrong track”. Inflation and costs of goods continue to be an overwhelming reason cited by those who believe Michigan’s economy is on the “wrong track.”
Costs remain the top voter concern as long-standing worries about consumer goods prices persist. However, there is a shift in that concern that brings an increased focus on the impact of higher interest rates and housing costs as voters express concerns about mortgage rates, credit card debt, and auto loans. Despite increased housing costs, the Detroit Region’s home prices remain relatively affordable compared to peer regions.
Inflation fears have nearly doubled since September 2024, reflecting a disconnect between voter perception and the reality that the U.S. inflation rate ranked among the lowest of the advanced economy countries in 2023. Voters do not appear aware of or care about the reality that inflation is a global phenomenon or that the U.S. has fared well compared to its peers.
There is a notable post-election shift along party lines with inflation concerns and the prospect of a potential recession. Republican voters largely believe inflation will get better, while Democrats now believe it will get worse. While overall recession fears saw a minor increase, Democrat voters are most likely to expect a recession next year, while Republican voters’ fears of a recession have dropped.