DETROIT – Michigan’s top executives signaled a weaker economic outlook for both the state and country compared to a year ago, citing pressure from tariffs and global economic uncertainty, according to Business Leaders For Michigan’s CEO Economic Outlook Survey released today. About 87% expect a decline in Michigan’s economy and 81% predict a decline in the U.S. economy.
“First quarter data showing a decline in economic growth, continued inflation and ongoing trade uncertainty continue to influence CEO outlook. Michigan tends to be more exposed to those factors than other states,” said Jeff Donofrio, president and CEO of Business Leaders For Michigan. “While businesses can’t control geopolitical forces, our state and federal leaders can help blunt the impact by ensuring competitive and consistent policies here at home.”
When asked about Michigan’s economy over the next six months, 87% of survey respondents said they anticipate a decline, an increase from just 20% one year ago. Only 11% expect no change, compared to 73% last year. Similarly, 81% of respondents predict a decline in the U.S. economy within the same period, compared to 24% one year ago, while 9% foresee no change, down from 73% previously. More than 80% expect tariffs to negatively impact their businesses.
Economic headwinds are expected to impact revenues and capital expenditures as well. Thirty-six percent of respondents predict a drop in revenue over the next six months, compared to 17% one year ago, while 30% expect an increase, down from 51% a year ago. With the high degree of uncertainty around costs and revenues, employers are being more cautious about deploying new capital, with 42% of respondents anticipating a decline in new investments, compared to 24% a year ago.
Despite the negative economic outlook, the majority of employers still expected to at least maintain employment levels in the state, with 57% seeing no change and 9% expecting an increase. Thirty-four percent of respondents expect a decrease in their Michigan employment levels over the next six months, up from 24% a year ago. Additionally, outlook on their Michigan real estate footprint remains stable, with 91% of respondents predicting no change and 6% predicting an increase their real estate footprint over the next six months.
The survey also asked the business executives about the status of hybrid work environments for their employees who can work in offices. Sixty-two percent of respondents indicate they have a hybrid work policy for their employees who could work remotely. Twelve percent have no requirement and 20% require office workers to be in person five days a week., a shift from a year ago, when just 11% of respondents required office workers to be in person five days a week and 25% had no requirement. The internal Board member survey was conducted between April 21-May 2.
About Business Leaders For Michigan
At Business Leaders For Michigan, we are united by an ambitious goal: making Michigan a Top 10 state for jobs, talent and a thriving economy. Our impact is driven by the direct involvement of CEOs from the state’s leading employers. Member companies employ more than 540,000 Michiganders, generate over 1 trillion in economic activity and educate more than half of Michigan’s public university students. Guided by research and diverse perspectives, we develop strategies, shape public policy and drive initiatives that bring people and ideas together to ignite change—for growth, shared prosperity and lasting progress. For all of us. For Michigan.